The streaming media device manufacturer Roku (ROKU) has had quite the move lately. As shown in the chart below, the stock took the stairs up from late 2018 through early September, and it has taken the elevator down ever since. Just 11 days ago on September 9th, ROKU hit an intraday high of $176.55.At that point, the stock was up 70% since the start of August, +476% since the start of 2019, and +571% since its intraday low in Q4 2018.

Since its high on September 9th, ROKU has lost 41% of its value, and it’s down 20% today alone after Pivotal Research Group slapped a $60 price target on the stock this morning. Analyst price targets don’t normally cause 20% drops, but ROKU is a prime example of the unwind we’ve seen for a lot of high-growth, high-valuation momentum stocks that have taken it on the chin this month. Yesterday, ROKU managed to hold support right at its 50-day moving average, but today that support has completely broken down, and there are seemingly no bids insight. Traders will now be looking for support at $100, and if that doesn’t hold, $80 is the next level.  

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