Roku has sold off over 23.8% post Q4 earnings, being the worst drop post earnings ever in Roku's publicly traded shares. Along with that, Walmart recently announced M&A via the buyout of Vizio, and Roku dropped a further 7%, adding another hit to long term investors' market value. Roku's Q4 earnings address the elephant in the room: slowing growth post pandemic (market share, average revenue per user), higher interest rates, macroeconomic uncertainty, and competition in the streaming landscape. Their earnings also announced record user numbers, both U.S. and internationally of 80M accounts, 2024 free cash flow guidance, opex decreases, and future revenue guidance growth. Ultimately, the future earnings of Roku will ultimately determine of the bear thesis holds up and if this will further depress Roku's share price.
However, along with this major pullback, there is an opportunity to acquire shares that investors were once paying over 30% more for just a few days ago. Key levels to look out for are the 61.8% ($65), 78.6% ($55) retraces. Expect more buyers than sellers in these upcoming zones.
However, along with this major pullback, there is an opportunity to acquire shares that investors were once paying over 30% more for just a few days ago. Key levels to look out for are the 61.8% ($65), 78.6% ($55) retraces. Expect more buyers than sellers in these upcoming zones.