Roku Stock Sinks 15% After Morgan Stanley Says It’s Reached ‘Peak’ Market Enthusiasm

“We believe the market is underestimating the competition” Roku faces, analyst Ben Swinburne says

Roku’s stock was hammered on Monday, after Morgan Stanley put out a note to clients warning its share price is overvalued following a remarkable run this year.

The reasons for investors to be enthusiastic on Roku are already “priced in,” according to the note from Morgan Stanley analyst Ben Swinburne. Heading into Monday morning, Roku had been a Wall Street darling this year, with the company’s share price increasing from about $32 a share to more than $160 per share, thanks to strong customer growth and the continued expansion of its advertising business.

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Sean Burch

Sean Burch

Tech reporter • sean.burch@thewrap.com • @SeanB44