ROKU - Why Roku Stock Got Clobbered on Wednesday

Shares of Roku (NASDAQ: ROKU) got clobbered Wednesday, sinking as much as 10.2% early in the day. As of 11:11 a.m. ET, the stock was still down 9.6%.

The catalyst that sent the streaming pioneer lower was an unfavorable ruling in a patent infringement case and a couple of price target reductions by Wall Street analysts -- but the news isn't as bad as it seems.

The U.S. International Trade Commission (ITC) reached a decision in a dispute between Roku and Universal Electronics (NASDAQ: UEIC) , a maker of universal remotes. In a mixed ruling, the ITC found that the remotes used by several Roku products -- primarily older versions of its Soundbar and Roku Ultra streaming device -- infringed on Universal's patents.  As a result, the ITC issued an import ban on the products at the heart of the case.

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