Roku Stock Sinks Amid Big Tech Competition and Shaky Ad Market

Roku stock plummeted over 20% due to concerns about competition from tech giants like Amazon, a shaky ad market, and missed guidance estimates for gross profit. Despite beating Q4 revenue and earnings expectations and seeing growth in accounts and streaming hours, the company's average revenue per user fell 4% year over year. Analysts downgraded the stock and expressed concerns about the company's exposure to media and entertainment advertising, as well as competition in the connected TV and streaming ads business from companies like Amazon and Walmart.