Roku ROKU shares were trading lower on Tuesday after a report emerged that Comcast CMCSA could be eyeing the smart TV market and is in talks with Walmart WMT to distribute smart TVs.
What To Know: Comcast and Walmart are looking to join forces to become a dominant hub for streaming apps as well as TV channels, according to The Wall Street Journal, citing people familiar with the matter,
The partnership would involve Walmart promoting TV sets running Comcast software, and would get a share of recurring revenue from Comcast in return, according to WSJ.
See Also: BofA Brushes Aside Roku Investor Concerns, Raises Price Target
Why It's Important: Roku dominates the market, which also includes Apple's AAPL Apple TV and Amazon's AMZN Fire TV, and was the lead streaming TV platform in the U.S. in the third quarter of 2020. Roku media streamers and Roku-based smart TV accounted for the lion's share of over 30% of all connected TV device sales in the U.S.
Roku's stock traded down 2.74% to $201.21 per share at the time of publication Tuesday. The stock has a 52-week high of $239.14 and a 52-week low of $58.22.
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