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Roku’s Stock Drops as CFO Steve Louden Exits Company

Louden steps down as Roku’s stock has increased more than 300% this year

Roku’s stock fell 3% in after-hours trading on Monday after the company shared CFO Steve Louden would be stepping down.

Louden joined the company in 2015 and helped guide the company during its initial public offering in 2017.  Roku made the announcement in a filing with the Securities and Exchange Commission, saying Louden planned to return to Seattle and spend time with his family after helping the company find his replacement.

Roku has enjoyed a big 2019 so far, with the company’s stock up more than 300% since early January. The company’s stock, after it’s after-hours drop on Monday afternoon, was trading at $134.18 per share.

The company reported it hit 32.3 million active accounts during its Q3 report in November — an increase of 1.7 million new customers from the previous quarter. Roku, in its letter to shareholders, boasted its viewers watched 10.3 billion hours of content during Q3 — or the equivalent of about 3.5 hours per account spent streaming each day.

“We continue to execute well against our long-term strategic plan as the TV market shifts to streaming,” the company added.

The Los Gatos, California-based company entered the holiday quarter as two major streaming services, Disney+ and Apple TV+, are hitting the market. Their popularity, coupled with the strength of other established companies like Netflix and Hulu, could spur Roku users to spend even more time on their devices in the quarters ahead.

Still, the company’s stock was hammered earlier this month¬†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.