Roku (NASDAQ:ROKU)
Shares of video-streaming platform provider Roku (NASDAQ:ROKU) sank 3.5% this morning as investors assessed the new inflation data. Roku stock had been falling earlier in the day, but by midafternoon it had begun to rise, most likely due to the announcement that the business would release a series of smart-home goods.
The shares of the video-streaming company Roku stock were up 0.7% as of 2:20 p.m. ET.
What’s the Reason?
Roku opened the trading day on a down note as the Bureau of Labor Statistics reported that its producer price index increased by 0.4% in September, which was much larger than the 0.2% gain that most market watchers had expected.
The Federal Reserve closely monitors all inflation indicators, and the increase in the producer price index gives it another justification to maintain its policy of gradual interest rate increases. Accordingly, this caused concern among Roku’s investors, resulting in a decline in the stock price.
But the price modestly rallied as investors absorbed the news that Roku (NASDAQ:ROKU) is developing a line of smart-home gadgets that would be accessible in Walmart shops.
Next week, the company’s security cameras, video doorbells, lights, and smart plugs will be available in Walmart stores and online at Walmart.com and Roku.com.
Mustafa Ozgen, Roku’s president of devices, stated in a news release that Roku (NASDAQ:ROKU) is expanding its ecosystem to include devices and services to power the contemporary smart home. The Roku platform is used by tens of millions of homes in the United States.
What’s Next?
Investors will undoubtedly be interested in tracking Roku (NASDAQ:ROKU) smart-home gadget sales in the following quarters. The new gadgets may diverge from the company’s primary goal of expanding its platform and advertising income, or they may be an opportunity to access a hitherto untapped revenue source.
Regardless, Roku stock investors won’t have a good idea of the devices’ sales performance or how well they mesh with the Roku ecosystem until a few quarters have passed.
While the market mulls over the effects of growing inflation and the Federal Reserve’s efforts to manage it, we should expect Roku stock share price to be volatile.
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Roku has partnered with Walmart to provide new smart home solutions.
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Author Shariq Khan 
