Roku Inc (ROKU) shares plummeted 5.04% during intraday trading on Tuesday, following a bearish report from Morgan Stanley that reiterated its Sell rating on the streaming platform company. The significant drop in stock price reflects growing investor concerns about Roku's future prospects in the competitive streaming market.

In the report released earlier in the day, Morgan Stanley analyst Cameron McVeigh maintained a Sell rating on Roku, with a price target of $80.00. This pessimistic outlook from a major Wall Street firm appears to have sparked a selloff among Roku shareholders. The analyst's decision to stick with the Sell rating suggests ongoing skepticism about Roku's ability to overcome challenges in the evolving streaming landscape.

The negative sentiment from Morgan Stanley could potentially impact Roku's near-term stock performance and raise questions about the company's growth strategy. As the streaming industry becomes increasingly competitive, with major players like Netflix, Amazon, and Disney vying for market share, Roku may face challenges in maintaining its position and expanding its user base. Investors will likely be closely monitoring Roku's upcoming financial results and any strategic moves to address the concerns raised by analysts.