What happened Shares of streaming video platform Roku (NASDAQ: ROKU) were down along with many other growth stocks today. But Roku stock also received an upgrade from Wall Street that was more like a downgrade, adding further downward pressure. As of 1:30 p.m. EST, Roku stock was down 5%. So what Morgan Stanley is raising its price target for Roku stock. This is typically celebrated by investors -- it's not uncommon to see a stock spike 10% or more with a raised price target. However, Morgan Stanley's isn't much of a compliment. Rather than its previous price target of $200 per share, the firm has raised Roku's price target to $275 per share, according to The Fly. Image source: Getty Images. The only problem is, Roku stock trades around $445 per share! Therefore, even though Morgan Stanley has increased its bullishness for Roku, it believes the stock might have almost 40% downside. Welcome to the sometimes confusing world of Wall Street. Now what Morgan Stanley's move recognizes the growth of Roku's business but questions the stock's valuation. To be sure, Roku stock is on an amazing run -- up close to 250% over the past year. And the stock does have a pricey valuation at a price-to-sales ratio of almost 37. That said, it's always important to look beyond static valuation metrics and ask if the company is well positioned over the next five to ten years. Great companies often trade at lofty valuations. Roku gets another chance to prove it's worthy of its price tag when it reports earnings on Feb. 18 after the market closes. 10 stocks we like better than RokuWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Roku wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Jon Quast owns shares of Roku. The Motley Fool owns shares of and recommends Roku. The Motley Fool has a disclosure policy.Source