Roku Stock Reeling on Disappointing Revenue Guidance

Core Insights - Roku Inc reported first-quarter revenue of $1.02 billion, marking the first time it surpassed the $1 billion threshold in a single quarter, alongside narrower-than-expected losses per share of 19 cents [1] - The stock is down 9.7% to $60.75 due to disappointing current-quarter and annual revenue forecasts, influenced by a shaky advertising market and broader macroeconomic uncertainty [1] - Analysts have adjusted price targets, with Evercore ISI reducing its target to $80 from $105, while Wells Fargo increased its target to $100 from $93 [2] Financial Performance - The first-quarter revenue of $1.02 billion represents a significant milestone for the company, indicating strong performance despite the stock's decline [1] - The 12-month consensus price target among analysts is $87.65, suggesting a 44.2% premium to current stock levels [2] Stock Performance - Roku's stock is currently testing the $60 level, which has been a significant support and resistance point over the past three years [3] - The stock has decreased by 18.2% since the beginning of the year, indicating a bearish trend [3] Options Activity - There has been a notable increase in options trading, with 25,000 calls and 34,000 puts traded, which is eight times the average daily options volume [4] - The most popular options include the February 30 put and the January 2027 35-strike put, indicating a shift in market sentiment [4]