Roku is getting slammed after Amazon teams up with Best Buy on streaming (ROKU)

pulse

April 18, 2018 6:21 PM

Best Buy will sell 11 TV models powered by Amazon.

The loss reverses Roku gains from earlier in the week fueled by ESPN+ and

Roku sank more than 8% Wednesday, reversing its gains from earlier in the week, after Best Buy announced a deal with Amazon that will drastically shrink Roku's presence in the chain's stores.

Starting this summer, Best Buy will sell 11 TV models powered by Amazon, including Toshiba and its in-house brand Insignia. It will also be the exclusive seller of those sets on Amazon.

Best Buy will still sell Roku-powered TV's by other brands.

Earlier this week, Steve Cohen's Point72 hedge fund bought 5% of Roku. The streaming company also agreed to carry ESPN"s new streaming channel, ESPN+. That news sent shares up as much as 14%.

Shares of Roku are down 37% since the beginning of 2018, while Best Buy is up 9%.

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