Roku (ROKU, $60.83) drops -4%, on downgrade by Loop Capital
Roku stock was downgraded to “sell” from “hold” by Loop Capital analysts, causing the shares to lose more than -4% in pre-market trading Wednesday.
Loop Capital analysts argued that shares of the digital media player/streaming service company were overvalued, and therefore they could no longer hold the “hold” rating.
Last month, Roku reported its latest quarterly earnings of 5 cents a share beating analysts’ expectations. Its average revenue per user also climbed +30%. However, analysts at Wedbush at the time downgraded the stock to “neutral” from “outperform”, citing possibilities of higher spending by Roku and therefore lower operating margins than the analysts’ had previously estimated.
ROKU sees its 50-day moving average cross bullishly above its 200-day moving average
The 50-day moving average for ROKU moved above the 200-day moving average on July 11, 2025. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Technical Analysis (Indicators)
Bullish Trend Analysis
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ROKU advanced for three days, in of 299 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 191 cases where ROKU Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 12 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Moving Average Convergence Divergence Histogram (MACD) for ROKU turned negative on July 14, 2025. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
ROKU broke above its upper Bollinger Band on June 06, 2025. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ROKU’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (3.962) is normal, around the industry mean (5.849). P/E Ratio (66.667) is within average values for comparable stocks, (95.272). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.987). ROKU has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.041). P/S Ratio (2.609) is also within normal values, averaging (30.943).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROKU’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
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General Information
a developer of applications for digital media
Industry MoviesEntertainment
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