Roku (NASDAQ:ROKU) shares plummeted nearly 30% last week, its worst weekly performance stretching to its 2017 IPO.
The streaming platform stock was pummeled Friday after Pivotal Research slapped a sell rating and $60 price target on it, fearing a rush of competition in the space. It was crushed days earlier after Comcast (NASDAQ:CMCSA) announced it would offer a free streaming box to its internet customers.
Says Craig Johnson, chief market technician at Piper Jaffray, it could get even worse.
Roku has “violated the uptrend support line off those April lows of this year. You’ve got some support that comes in at $113. But purely based upon the charts, your best support comes in all the way back down at the 200-day moving average. So you can see the stock trade back down to $81, maybe even $75,” Johnson said Friday
A move down to $75 marks 30% downside from current levels. It has not traded at that price since May.
One expert says a pullback in Roku’s share price to 14 to 15 times sales, around $100, would make him a buyer. Roku would need to fall 7% from Friday’s close to get to that level.
Meantime, Monday, Roku joined with Innovid to announce a new analytics solution to measure and understand daily demographic reach and frequency on TV campaigns run across the Roku platform, and Linear TV.
The new solution marries OTT and linear TV occurrence and identity data from Roku’s 30.5 million active accounts as of June 30, with Innovid’s OTT ad serving footprint across over 75 million households. Matched together, the unique datasets are expected to provide marketers with new insights to better allocate advertising inventory bought from Roku and from other publishers without additional tagging or integrations.
Shares in Roku began Monday down 26 cents to $107.79.
Tech Insider
