The high-flyer fell 7.6% yesterday after Morgan Stanley downgraded to Underweight, and is lower by 1.45% premarket as Citi's Mark May cuts to Sell.
May is "uncertain" about the reasons for the more than tripling in the stock price, but takes note of the small float and limited number of over-the-top plays for investors.
Roku's (NASDAQ:ROKU) 21x multiple compares to peers at 5.2x and Netflix at 18x. While peers are profitable, Roku will probably have to wait until 2019 to be so.
Source: Bloomberg's Courtney Dentch