Roku’s shares fell 10% in the afternoon session after advertising software platform The Trade Desk announced plans to launch a new connected TV operating system (OS) called Ventura, expected to launch as early as 2025. Given Roku’s dominance in the connected television market, TTD’s move could be seen as a threat.
However, experts suggest that the stock market overreacted, and big price drops can present opportunities for investors. The recent volatility in Roku’s shares is partly due to concerns about the November 2024 presidential election and weak quarterly earnings from companies like Starbucks and Boeing.
The value of stocks depends on their future cash flows, which are affected by lower interest rates and higher growth expectations. Roku has fallen 22.7% this year and is now trading 35.7% below its 52-week high. Despite the challenges, some analysts see opportunities in enterprise software stocks leveraging generative AI capabilities.
In fact, a report on a profitable and fast-growing enterprise software stock is being offered for free to investors, highlighting the potential for growth in emerging technologies.
Source: https://finance.yahoo.com/news/why-roku-roku-stock-nosediving-203501148.html