What's Going On With Roku Stock Today?

What's Going On With Roku Stock Today?

Roku Inc ROKU shares are volatile Tuesday following a downgrade from Keybanc.

What Happened: Keybanc analyst Justin Patterson downgraded Roku from an Overweight rating to a Sector Weight rating, citing "limited upside" for the streaming platform stock.

Keybanc previously expected Roku to see outsized growth, but the company is now losing share of connected TV ad spend, Patterson said. Furthermore, Roku isn't in a position to pull back on investments without risking a revenue slowdown.

Current analyst estimates do not accurately reflect Roku's challenges, the Keybanc analyst said.

Against this backdrop, Roku shares "offer limited upside from current levels," Patterson said.

Related Link: 'Limited Upside:' Why This Roku Analyst Is No Longer Bullish

ROKU Price Action: Roku has a 52-week high of $266.05 and a 52-week low of $44.50.

The stock initially traded lower on the downgrade, but it was up 0.92% at $54.38 at time of publication, according to Benzinga Pro.

Photo: courtesy of Roku.

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