Roku Stock Draws Bear Note Before Q3 Earnings

The 40-day moving average has consistently pressured ROKU

Digital Content Manager
Oct 31, 2022 at 1:48 PM
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Streaming giant Roku Inc (NASDAQ:ROKU) is drawing some negative analyst attention ahead of its third-quarter earnings report, which is due out after the market closes on Wednesday, Nov. 2. Though Wedbush issued a price-target cut from to $75 from $85, ROKU was up 1.5% to trade at $55.37 at last check. The 40-day moving average has guided the shares lower for most of the year, though, and longer term ROKU carries an 82% year-over-year deficit.  

ROKU 40 Day

Roku stock's history of post-earnings moves is a mixed bag. The shares finished four of the last eight next-day sessions higher, but dropped 23.1% in late July after the company missed second-quarter revenue estimates. ROKU averaged a move of 10.7% in the past two years, regardless of direction, but this time around the options pits are pricing are in a much bigger swing of 25.4%.

Short sellers have been piling on the equity of late. In fact, short interest is up 14.7% in the last two reporting periods, and the 10.64 shares sold short account for 8.8% of the stock's available float.


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