Roku just downgraded at MoffettNathanson, here’s why

MoffettNathanson analyst Michael Nathanson downgraded Roku to Sell from Neutral. The firm had taken its prior Sell call off the stock heading into Roku’s Q3 earnings on a belief that the company was getting more focused on efficiency and margin expansion, but “at over $100 per share now, Roku’s share price has nearly doubled since then” and the firm now thinks that the valuation is “stretched relative to the top-line risks we continue to envision.”