---
title: "BUZZ-Roku falls as Wells Fargo downgrades to \"underweight\" on shifting competitive landscape"
description: "Roku's stock fell 2.5% after Wells Fargo downgraded the streaming-device provider to \"underweight\". The brokerage cited the acquisition of Vizio by Walmart as a significant risk, leading to a decrease"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/108741940.md"
published_at: "2024-02-27T14:29:51.000Z"
---

# BUZZ-Roku falls as Wells Fargo downgrades to "underweight" on shifting competitive landscape

> Roku's stock fell 2.5% after Wells Fargo downgraded the streaming-device provider to "underweight". The brokerage cited the acquisition of Vizio by Walmart as a significant risk, leading to a decrease in net adds for Roku. Additionally, competition from heavyweights like Netflix and Amazon has impacted Roku's stock, which has dropped 32% since February 15. The current rating on Roku is "hold" with a median price target of $81.

\*\* Roku Inc’s (ROKU.O) stock down 2.5% at $62.73 premarket after Wells Fargo downgrades streaming-device provider to “underweight” from “equal weight”, saying it thinks Walmart’s (WMT.N) acquisition of Vizio (VZIO.N) creates substantial risk

\*\* Brokerage chops PT from $77 to $51, implying ~21% downside to stock’s prior close

\*\* Deal with smart-TV maker VZIO sets a new connected TV (CTV) valuation well below ROKU’s current multiple, Wells Fargo analyst Steven Cahall says in research note

\*\* Cahall thinks WMT is ~1/3rd of ROKU’s device sales/net adds, but with the retailer set to buy VZIO for its SmartCast O/S, this will likely pressure net adds by 2025-26

\*\* In addition, with WMT likely moving its onn CTV to SmartCast, ROKU will need to reposition given “this major shift in the competitive landscape”

\*\* WMT last Tues announced $2.3 bln deal to buy VZIO

\*\* ROKU’s stock has shed 32% since co on Feb 15 forecasted steeper-than-expected Q1 loss amid stiff competition from heavyweights such as Netflix (NFLX.O) and Amazon.com (AMZN.O) for advertising dollars

\*\* Current rating on ROKU among 33 analysts is “hold”, per LSEG; median PT of $81 down from $85 a month ago

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

### Related Stocks

- [WMT.US - Walmart](https://longbridge.com/en/quote/WMT.US.md)
- [ROKU.US - Roku](https://longbridge.com/en/quote/ROKU.US.md)
- [AMZN.US - Amazon](https://longbridge.com/en/quote/AMZN.US.md)
- [NFLX.US - Netflix](https://longbridge.com/en/quote/NFLX.US.md)
- [WFC.US - Wells Fargo](https://longbridge.com/en/quote/WFC.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 亚马逊年度营收首超沃尔玛，零售双雄加码 AI 竞赛 | 亚马逊取代沃尔玛，成为年营收最高的公司。沃尔玛周四公布，其最近一个财年的年度营收为 7132 亿美元，这略低于亚马逊的 7169 亿美元。两家公司在人工智能领域采取了不同的策略：亚马逊大幅加大了对人工智能的投资，而沃尔玛则更依赖技术合作伙伴 | [Link](https://longbridge.com/en/news/276384959.md) |
| 沃尔玛｜8-K：2026 财年 Q4 营收 1889 亿美元超过预期 |  | [Link](https://longbridge.com/en/news/276329482.md) |
| 机构 “最超配” 闪迪，“最低配” 英伟达 | 据摩根士丹利最新的统计：“机构对美国大型科技股的低配程度是 17 年来最大的” 相比 2025 年 Q4 的标普 500 指数权重，“$NVDA 仍然是机构低配程度最大的大型科技股，其次是苹果、微软、亚马逊和博通，而存储巨头闪迪则是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) |
| 缺电、缺水、缺人还抢地！美国数据中心建设狂潮面临阻力 | 科技巨头掀起的数据中心基建狂潮正遭遇严峻 “现实墙”：从电网容量、水资源瓶颈到技术工人短缺，执行风险急剧上升。亚马逊等巨头以惊人高价抢地，直接挤压住宅开发，甚至斥资 7 亿美元购入原定建房的地块。这场资源竞赛不仅推高了运营成本，更可能拖累  | [Link](https://longbridge.com/en/news/276290793.md) |
| 沃尔玛四季度财报超预期但盈利指引不及预期，CEO 称 “美国低收入家庭只能勉强维持生计” | 沃尔玛 Q4 营收超预期，新财年盈利指引（每股 2.75-2.85 美元）远低于市场预期的 2.96 美元，显示通胀压力下消费者支出不确定性犹存，拖累股价下跌 1.38%。财报印证 K 型” 分化：高收入家庭驱动增长，低收入群体 “钱包吃紧 | [Link](https://longbridge.com/en/news/276398633.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.