A report on the state of the service sector fueled fears that the Federal Reserve will be forced to continue its relentless campaign of rising interest rates in order to bring inflation under control. With that as a backdrop, shares of Amazon (NASDAQ: AMZN) were down 3.3%, Okta (NASDAQ: OKTA) tumbled 4.8%, and Roku (NASDAQ: ROKU) slumped 7.1% by the time the market closed. A check of all the usual sources found no company-specific news behind the sell-off, which suggests that the latest service sector data had investors worried the Fed will likely continue its ongoing campaign of interest rate hikes.
ROKU announced a collaboration with RCA for a new line-up of affordable smart TVs in the UK.
The market share leader among stateside streaming platforms has been buffering as an investment. Roku stock is trading 73% lower in 2022, off a blistering 88% since peaking in the summer of last year. Will near-term challenges keep Roku in Wall Street's doghouse, or is this a golden opportunity to hop on a top dog in an emerging niche?