Mario Gabelli is Selling These 5 Stocks

4. Roku, Inc. (NASDAQ:ROKU)

Number of Hedge Fund Holders: 57

Roku, Inc. (NASDAQ:ROKU) is a California-based consumer electronics and broadcast media company that offers advertising services to businesses as well. Mario Gabelli discarded his $956,000 stake in Roku, Inc. (NASDAQ:ROKU) heading into Q3 2021. 

Citi analyst Jason Bazinet lowered the price target on Roku, Inc. (NASDAQ:ROKU) to $275 from $410 and kept a Buy rating on the shares. According to the analyst, subscriber-based stocks have come under significant pressure and the equity returns are lagging the S&P 500 Index since January 2020.

On February 2, Roku, Inc. (NASDAQ:ROKU) announced that it is expanding its advertising business to Mexico, which will allow brands and content providers to reach more consumers through ad-supported content. 

In Q3 2021, 57 hedge funds were bullish on Roku, Inc. (NASDAQ:ROKU), with stakes totalling $2.82 billion, as compared to 61 funds in the quarter earlier, holding stakes in Roku, Inc. (NASDAQ:ROKU) worth $5.6 billion. ARK Investment Management is the biggest stakeholder of Roku, Inc. (NASDAQ:ROKU), with 4.73 million shares worth $1.48 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.”