Netflix Debacle Takes Another Victim in Roku Stock

The shocking downturn of $Netflix (NFLX.US)$ this week is pulling other streaming stocks down in its wake. Now you can count $Roku Inc (ROKU.US)$ among one of the victims. Roku is down another 5% today, continuing a slide that began when $Netflix (NFLX.US)$ reported its first drop in total subscribers in a decade on Tuesday night. Since Netflix's earnings call, Roku is down nearly 12% overall, adding more kindling to the brush fire that is a 54% loss so far in 2022.

Benchmark analyst Daniel Kurnos dropped his firm's price target on Roku stock from $305 to $240 today, although he maintains a "buy" rating on the share. Kurnos cited what he called the $Netflix (NFLX.US)$ "debacle" and said that Roku may underperform analysts' expectations for the next two quarters. But, he said, Roku is what he calls a neutral player in the streaming space, as it provides platforms for , $Disney (DIS.US)$ , $Apple (AAPL.US)$ Apple TV and other streaming services to reach customers who don't have smart TVs.