Shares of Roku Inc. (ROKU) are down 2.7% in Thursday morning trading after Guggenheim's Michael Morris downgraded the stock to neutral from buy and lowered his price target to $72 from $77. "We believe that the Apple (AAPL) video product unveiled on March 25 represents an additional risk to Roku's active user base (even as the platform includes The Roku Channel) while Amazon's (AMZN) and Viacom's (VIA) greater pushes into advertising video on demand (AVOD) are increasing competition," Morris wrote. "CFO Steve Louden's sale of 100,000 shares (representing his non-option share holdings) subsequent to our note on [March 6, when Morris raised his target to $77] has also shaken our confidence." He still sees strong secular tailwinds for the company as streaming continues to gain steam but argues that expectations for growth in active accounts and advertising revenue are already in the consensus forecast. Morris also upgraded Facebook Inc. (FB) shares to buy from neutral ( ) in a Thursday note. Roku's stock has shot up 103% over the past three months, while the S&P 500 has risen 13%.
-Emily Bary; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
April 04, 2019 08:38 ET (12:38 GMT)
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