Roku (NASDAQ:ROKU) stock price predictions aren’t doing the shares any favors on Wednesday after one analyst put out a bearish take.
The news hitting ROKU stock today comes from MoffettNathanson analyst Michael Nathanson. He downgraded the company’s stock today from a neutral rating to a sell rating. That’s the opposite of the analyst consensus rating of buy, which comes from 22 buy, two hold, and two sell ratings.
Of course, the price prediction that Nathanson has for ROKU stock is also hammering shares today. That’s sitting at $220 per share, which is a massive drop from the firm’s previous price target of $330. It’s also well below the consensus price target of $408.67 and ROKU’s closing price of $276.46 on Tuesday.
So why is the MoffettNathanson analyst taking such a bearish stance on ROKU stock? To put it simply, he believes current price targets for the shares are “just too damn high.” But how did he come to that conclusion?
Nathanson’s new rating and price prediction for ROKU stock come after evaluating its most recent earnings report. He claims that revenue growth is slowing and also drops his revenue growth prediction for 2025 by 17%, reports TheFly.com.
Investors are taking note of Nathanson’s rating today with heavy trading of the shares. As of this writing, nearly 9 million shares of the stock have been traded. For comparison, the stock’s daily average trading volume is about 3.6 million shares.
ROKU stock is down 11.1% as of Wednesday afternoon and is down 22.7% since the start of the year.
Investors looking for more hot stock news today will want to keep reading!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.