FOXA - Why did Roku stock drop today? Another key analyst cuts

Roku (NASDAQ:ROKU) has slid 11.5% to its lowest point in nearly a year, with analysts including Michael Nathanson issuing further downgrades and target cuts following its mixed third-quarter earnings. Nathanson downgraded the stock to Sell and cut his price target by a third, to $220 from $330, citing the potential slower ad growth on Roku Channel as leading services consolidate ad spending. Nathanson benchmarked the Roku Channel against its ad-supported video competitors Pluto TV (VIAC, VIACA) and Tubi (FOX, FOXA) to get a handle on Roku's share of ad revenues, but was "left with a large and fast growing portion of unidentifiable ad revenues coming from the long tail of third party services on Roku." It its earnings report, Roku noted that ratings drops created supply shortages and increasing ad prices. "As a result, the top 10 cable TV advertisers doubled spend on the Roku platform year-over-year. Total monetized video

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Why did Roku stock drop today? Another key analyst cuts