Roku Stock Drops 10% on Report of Potential Walmart-Vizio Deal
• Roku stock suddenly dropped 10% around 3pm when a report said Walmart wants to buy Vizio for $2 billion • Vizio competes with Roku in streaming devices and smart TV operating systems, so this raises competitive concerns • Walmart wants to use Vizio to build an ads business using its consumer data • Roku relies on growing active accounts and engagement to drive ad revenue • It's an unconfirmed report, so investors should wait for more clarity before overreacting