Billionaire Ken Fisher is Selling These 5 Stocks

3. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 57

Roku, Inc. (NASDAQ:ROKU) is a California-based company that delivers consumer electronics and broadcast media for video streaming, and also distributes licensed hardware and software to other companies. 

Fisher purchased a stake in Roku, Inc. (NASDAQ:ROKU) in Q3 2020, buying 1,431 shares worth $270,000. He sold off his stake in the fourth quarter of 2020. He once again acquired Roku, Inc. (NASDAQ:ROKU) shares in Q2 2021, worth $427,000, which he sold entirely in the third quarter. 

On January 20, Deutsche Bank analyst Jeffrey Rand lowered the price target on Roku to $300 from $400 and kept a Buy rating on the shares. The stock has dropped 50% in the last three months and while short-term headwinds have increased during this time, the pullback is overdone, the analyst tells investors in a research note. According to Rand, Roku, Inc. (NASDAQ:ROKU) remains well positioned as the market leader in the “rapidly growing” connected TV market.

Among the hedge funds tracked by Insider Monkey in Q3 2021, Cathie Wood’s ARK Investment Management is the biggest Roku, Inc. (NASDAQ:ROKU) stakeholder, with 4.73 million shares worth $1.4 billion. Overall, 57 hedge funds reported owning stakes in Roku, Inc. (NASDAQ:ROKU), valued at $2.8 billion. 

Here is what LRT Capital Management has to say about Roku, Inc. (NASDAQ:ROKU) in its Q3 2021 investor letter:

“Roku, Inc. (ROKU) – the streaming TV company is currently trading at the lowest valuation it has been in many years, despite reporting 50% revenue growth, and over 80% growth in its most important and profitable “Platform” segment. Ostensibly the risk of increased competition is weighing on the stock, in practice we believe Roku’s recent underperformance has more to do with it being the 4th largest holding in Cathy Wood’s ARKK ETF, which has been hammered by outflows in recent weeks. We wrote about Roku in our July Investor Letter.”