Roku Slumps as Amazon Competition Heats Up By Investing.com No ratings yet.

© Reuters.

Investing.com – Roku slumped Tuesday on fears the streaming device company is set to face stiff competition from Amazon after the e-commerce giant launched new smart TVs.

In a sign that Amazon is starting to ramp up plans to bolster advertising on its streaming TV products and encroach on Roku’s turf, the e-commerce giant launched three new smart televisions with support for HDR to the product line for the first time.

Roku (NASDAQ:) fell more than 3%, while Amazon.com (NASDAQ:) fell 1.4%.

The sticker price of the TVs is also attractive, increasing the likelihood that Amazon adds to its superior user base. The 43-inch model is priced at $329.99, 50-inch at $379.99 and 55-inch at $449.99.

Roku is estimated to have 28.6 million active user accounts, with Amazon’s Fire TV slightly higher at about 30 million active users to date.

Amazon is not the only competitor posing a threat to Roku. Apple’s (NASDAQ:) video product unveiled on March 25 is also expected to vie for a piece of the pie.

Despite the weakness, Roku is up nearly 200% year to date as better-than-expected first-quarter results in May helped the stock mount a recovery.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

Please rate this