Roku (NASDAQ:ROKU) stock took a beating on Monday after it was revealed a large portion of the company’s funds were held at SVB Financial’s (NASDAQ:SIVB) Silicon Valley Bank.
That matters as Silicon Valley Bank is one of the biggest stories lately with its failing business. That resulted in the government stepping in to bail out the bank after depositors started pulling their money.
According to Roku, 26% of its cash and cash equivalents are held in uninsured deposits at Silicon Valley Bank. The company said in a U.S. Securities and Exchange Commission (SEC) filing that it doesn’t know how much of that it can recover from the bank.
Here’s what a Roku spokesperson told CNBC about this affects the business:
“As stated in our 8-K, we expect that Roku’s ability to operate and meet its contractual obligations will not be impacted.”
How This Affects ROKU Stock on Monday
Considering the fallout caused by the Silicon Valley Bank failure, it makes sense that ROKU is dropping today. With that comes some 5 million shares on the move. That’s closing in on the company’s daily average trading volume of about 7.9 million shares.
ROKU stock is down 3.7% as of Monday morning. However, the stock is still up 42.5% since the start of the year.
Investors looking for more of the latest stock market news will want to keep reading!
We’ve got all of the hottest stock market coverage traders need to know about on Monday! That includes all of the news moving shares of bank stocks, Charles Schwab (NASDAQ:SCHW) stock, and Illumina (NASDAQ:ILMN) stock today. You can read up on all of that news at the links below!
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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.