Roku Inc. (ROKU) has disclosed a new risk, in the Share Price & Shareholder Rights category.
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Roku Inc. faces significant risks associated with its stock repurchase program, as the company has no obligation to repurchase a specific amount of shares or to complete the program, which can be altered or terminated at any time. This uncertainty may undermine investor confidence and negatively impact the company’s stock price and reputation. Moreover, the program could increase stock price volatility and reduce market liquidity, while also limiting the company’s cash reserves for essential business activities. Consequently, any changes to the program could lead to a decrease in the trading price of Roku’s Class A common stock.
The average ROKU stock price target is $116.63, implying 9.89% upside potential.
To learn more about Roku Inc.’s risk factors, click here.