Roku (NASDAQ:ROKU) stock is falling on Tuesday as investors in the TV streaming platform company react to news of Walmart (NYSE:WMT) buying smart TV maker Vizio (NYSE:VZIO)
Walmart is going to acquire Vizio for $2.3 billion in cash to fuel its planned expansion into the smart TV advertising space. That will have it directly competing against Roku and has the company’s shareholders worried.
Walmart is a much larger business than Roku. The acquisition also gives it access to smart TVs made by Vizio. This increased presence could place additional pressure on Roku. If that happens, it could be bad news for shares of ROKU stock.
How This News Affects ROKU Stock Today
The initial reaction from ROKU investors isn’t positive with the company’s shares seeing heavy trading today. That’s due to investors selling the stock alongside the WMT and VZIO deal.
As of this writing, more than 8.3 million shares of ROKU stock have changed hands. This is already well above the company’s daily average trading volume of about 6.3 million shares.
ROKU stock is down 7.1% as of Tuesday morning. The stock is also down 25.2% since the start of the year.
Investors who are searching for even more of the most recent stock market stories will want to stick around!
We are offering insight into all of the biggest stock market happenings worth reading about on Tuesday! A few examples include a new deal for Capital One (NYSE:COF), why Aurora Cannabis (NASDAQ:ACB) stock is falling and more details on the WMT and VZIO agreement. You can check out all of these topics at the following links!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
