Roku Inc's stock experienced a sharp decline, plummeting 5.02% during Wednesday's trading session. This significant drop comes in the wake of a Morningstar report that shed light on fund managers who have destroyed the most investor capital over the past decade.
According to the report, Cathie Wood's ARK Invest, known for its substantial investments in companies like Roku, was identified as the worst-performing fund manager. The analysis revealed that ARK Invest has destroyed a staggering $13.4 billion in investor value over the last ten years. This negative spotlight on one of Roku's major investors appears to have sparked concerns among shareholders, leading to the sell-off.
The ARK Innovation ETF, ARK Invest's flagship fund which holds significant positions in Roku, has faced challenges in recent years. After a stellar performance in 2020 with a nearly 150% gain, the fund struggled in subsequent years, dropping 24% in 2021 and suffering a brutal 67% decline during the 2022 bear market. This ongoing volatility and underperformance of a major institutional investor have likely contributed to the negative sentiment surrounding Roku's stock today.
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