Roku drops after report says Amazon is turning up the heat on streaming
- Roku shares dropped Wednesday afternoon following a report that said Amazon was looking to expand its streaming offerings.
- Amazon has "talked to executives at media companies and advertising agencies about its plans to include more ad-supported streaming channels to compete with Roku and Pluto TV," Cheddar reported.
- Watch Roku trade live.
In what's become a familiar negative market reaction to Amazon's plans to extend itself into an industry, shares of Roku fell as much as 3.2% Wednesday after it was reported that Amazon is looking to expand its streaming offerings.
Amazon is planning a "vast" expansion of its free streaming service on Amazon Fire TV devices, Cheddar reported, asking marketers to pledge millions of dollars to support the new offerings. Amazon declined to comment to Cheddar.
"Amazon has talked to executives at media companies and advertising agencies about its plans to include more ad-supported streaming channels to compete with Roku and Pluto TV, which offer free access to TV shows and movies with commercials," Cheddar reported.
Wednesday's slide did little to dent Roku's recent rally. Shares are up 126% this year, trading at $68.40 apiece.
Now read more markets coverage from Markets Insider and Business Insider:
- Verizon's 5G service is here, but Apple could take over a year to build a compatible phone
- Trump is reportedly raging about Fed Chairman Powell and thought of replacing him with a new conservative
- JPMorgan retakes the crown as Wall Street's top dealmaker
