Arlo Stock Dives On Outlook, Roku Stock Rises On Upgrade

Two consumer electronics firms saw their shares go in different directions Monday on news reports. Arlo stock plummeted on lowered sales guidance for the holiday quarter, while Roku stock jumped on a rating upgrade.


Arlo Technologies (ARLO) stock fell 22.9% to 9.28 on the stock market today. Meanwhile, Roku (ROKU) shares climbed 3.5% to 42.17.

Arlo cut its fourth-quarter sales guidance to reflect the delayed launch of a new product. It now expects revenue of $125 million to $130 million, down from $140 million to $150 million previously. Wall Street was modeling $149 million.

San Jose, Calif.-based Arlo makes home security systems, including wireless cameras, doorbells and lights. It also sells subscription services for its security cameras.

Arlo Stock Hits Record Low

Arlo stock notched a record low of 9.17 in intraday trading on Monday. A spinoff from networking-gear maker Netgear (NTGR), Arlo went public on Aug. 3 at $16 a share. It notched a record high of 23.77 on Aug. 27.

In a news release, Arlo blamed the lowered sales guidance on the delay of its Arlo Ultra, a new flagship security camera. It originally expected to ship the camera in late November but pushed that back to January.

Ultra takes video in 4K ultra-high-definition quality with high dynamic range. The wire-free security camera also has an integrated spotlight, color night vision, 180-degree viewing angle, and dual noise-canceling microphones. It will cost $399.99 for the single-camera system, which includes a one-year subscription to Arlo Smart Premier, the company said.

Arlo competes with (AMZN), Alphabet‘s (GOOGL) Google and others in the home-security camera business.

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Roku Stock Rises On Upgrade To Buy

D.A. Davidson analyst Tom Forte upgraded Roku stock to buy from neutral. He reiterated his price target of 49 on the stock.

The truce in the U.S.-China trade war alleviates a near-term risk for the stock, Forte said. Roku makes streaming video devices, including set-top boxes and dongles, using contract manufacturers in China. Roku also supplies a smart TV operating system to television manufacturers. Plus, it sells advertising on its popular streaming platform.

In streaming devices, Roku competes with Amazon, Google, Apple (AAPL) and others.


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