Benzinga | Nov 17, 2021 10:52AM EST

Why Roku Shares Are Sliding Today

Roku Inc (NASDAQ:ROKU) is trading significantly lower Wednesday after MoffettNathanson analyst Michael Nathanson downgraded the stock from a Neutral rating to a Sell rating and lowered its price target from $330 to $220.

"Simply put, we think our and the Street's long-term revenue and earnings estimates are just too damn high," Nathanson said.

The MoffettNathanson analyst believes Roku will need to monetize an "absurdly high portion" of ad-based video on demand impressions to get close to meeting expectations.

Nathanson also cited rising competition and signs of slowing revenue growth as reasons for the downgrade.

See Also: Looking At Roku's Recent Whale Trades

ROKU Price Action: Roku has traded as high as $490.76 and as low as $220.60 over a 52-week period.

The stock was down 9.82% at $249.31 at time of publication.