5 Media Stocks Crushed in 2022

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1. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 34

Year to Date Loss as of August 5: 64.72%

Roku, Inc. (NASDAQ:ROKU) operates a TV streaming platform. Its platform allows users to discover and access various movies and TV episodes, as well as live TV, news, sports, shows, and others. On July 28, Roku, Inc. (NASDAQ:ROKU) reported earnings for the fiscal second quarter of 2022. The company reported a loss per share of $0.82 and missed expectations by $0.13. The company’s revenue amounted to $764.41 million and was short of estimates by $40.24 million. As of August 5, Roku, Inc. (NASDAQ:ROKU) has lost 64.72% of its value year to date.

Wall Street is bearish on Roku, Inc. (NASDAQ:ROKU) and sees trouble for the company ahead. On July 29, BofA analyst Ruplu Bhattacharya double downgraded Roku (NASDAQ:ROKU) to Underperform from Buy and slashed his price target to $55 from $125. The analyst noted that Roku, Inc.’s (NASDAQ:ROKU) revenue growth estimates for the fiscal years 2022 and 2023 have been cut to 11% and 12% year over year, from 25% to 33%, respectively. The analyst noted that inflation, recession, and supply chain headwinds are expected to last for the next two to three quarters, and a worsening macro environment will lead to further downgrades and lowered forecasts. On August 1, Morgan Stanley analyst Benjamin Swinburne trimmed his price target on Roku, Inc. (NASDAQ:ROKU) to $55 from $80 and reiterated an Underweight rating on the shares.

At the end of Q1 2022, 34 hedge funds held stakes in Roku, Inc. (NASDAQ:ROKU) worth $1.72 billion. This is compared to 43 hedge funds in the previous quarter with stakes worth $2.23 billion. The hedge fund sentiment for the stock is negative.

As of June 30, ARK Investment Management owns more than 10.1 million shares of Roku, Inc. (NASDAQ:ROKU) and is the top shareholder in the company. The investment covers 5.69% of the fund’s 13F portfolio.

You can also take a look at 10 Best Streaming Stocks to Buy Now and 15 Biggest Media Companies.

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