2024-07-15 10:00:00 ET
Shares of Roku (NASDAQ: ROKU) fell 34.6% in the first half of 2024, according to data from S&P Global Market Intelligence . Just when you thought the media-streaming technology expert was on a roll, with a 125% price gain in 2023, the skeptics showed up in full force. What's going on?
Roku's stock took a brief 10% dip in the middle of January, as retail giant Walmart entered the smart TV market by acquiring electronics maker Vizio . Roku critics saw this deal as negative news since Walmart's massive market reach should add millions of active users to Vizio's SmartCast operating system. Vizio currently runs Roku's platform on a couple of smart TV models, and the new owner would probably double down on the in-house solution instead.
More to the point, Walmart's best-selling store brand is an exclusive Roku user today and the retailer would love to replace that software with a solution from its own developers. So Roku may lose a significant number of software sales in the American market when the Vizio deal is complete.
For further details see:
Why Roku Stock Started 2024 On a Low Note