Roku Inc. shares tumbled Friday, with the streaming-video platform company the latest example of a one-time pandemic favorite to see a precipitous decline as investors look past an era where consumers are no longer stuck indoors.
The shares tumbled as much as 29%, their biggest one-day drop on record, in the wake of fourth-quarter results that missed expectations and an outlook that was seen as weak, prompting at least one analyst downgrade. The stock is now down more than 75% off a peak hit in July, trading at its lowest since June 2020.
It’s a sharp reversal for Roku, which was among the stay-at-home winners amid the Covid-19 pandemic that shuttered cities for months on end. The stock gained nearly 150% in 2020 as the coronavirus accelerated a shift toward streaming video among consumers. Investors are now reassessing the valuation it had received, as they rotate out of high-growth tech names.
