Roku stock dips after Wells Fargo downgrade

Shares of Roku Inc. ROKU, +3.00% are down 2.5% successful premarket trading Friday aft Wells Fargo expert Steven Cahall downgraded the banal to adjacent value from overweight. He besides lowered his terms people to $350 from $488. While Cahall inactive thinks that Roku has a "long runway" to amended its mean gross per idiosyncratic (ARPU), helium said that this accidental is present amended understood by investors and frankincense reflected successful galore estimates. He noted that Roku's ARPU bushed for the 2nd 4th "slowed a lot" comparative to the archetypal quarter. In addition, helium worries that the competitory scenery from players similar Amazon.com Inc. AMZN, +1.06%, Alphabet Inc. GOOGL, +0.66% GOOG, +0.63%, and Comcast Corp. CMCSA, +0.27% is picking up, and Roku came up abbreviated with its progressive relationship nett additions successful the astir caller quarter. This could suggest that Roku's "valuation is much constrained, particularly if nett adds aren't accelerating," Cahall wrote. His downgrade comes a time aft a Guggenheim expert upgraded the stock, citing the company's planetary potential. Roku shares person mislaid 21% implicit the past 3 months arsenic the S&P 500 SPX, +1.21% has risen astir 4%.