Today's bear gap has ROKU testing the key $60 level
Streaming stock Roku Inc (NASDAQ:ROKU) is sinking, down 9.7% at $60.75 at last glance. The company posted better-than-expected first-quarter revenue of $1.02 billion, cracking the $1 billion level for the first time in a single quarter, as well as narrower-than-expected losses per share of 19 cents. However, disappointing current-quarter and annual revenue forecasts are hurting shares, amid shaky ad market and broader macroeconomic uncertainty.
Several analysts chimed in with price-target cuts after the event, including Evercore ISI to $80 from $105, while only Wells Fargo hiked its price target to $100 from $93. Of the 30 analysts in coverage, 19 carry a "buy" or better rating, while the 12-month consensus price target of $87.65 sits at a 44.2% premium to current levels.
Today's bear gap has Roku stock testing $60, which has been a significant level of both pressure and support over the past three years. A short-term pullback could have already been in the cards, per ROKU's 14-day relative strength index (RSI) of 71.1, which sits in "overbought" territory. Since the start of the year, the equity is down 18.2%.
Meanwhile, over in the options pits, 25,000 calls and 34,000 puts have crossed the tape, which is already 8 times the average daily options volume. The February 30 put is most popular, followed by the January, 2027 35-strike put, with new positions opening at both.