Institutional investors hold a staggering 65% stake in the company, making them a powerful group with significant influence over Roku's stock price movements. Recently, they saw their holdings' value drop by 11%, adding to a one-year loss of 37%, which may prompt them to sell off their shares, putting individual investors at risk of losing their investment. Despite owning a considerable stake in Roku, institutions' validation does not necessarily guarantee positive returns, as they can get it wrong at times. Past earnings trajectories and other factors should be considered before relying on their supposed validation. Moreover, since hedge funds own a meager percentage of Roku shares, the board is likely to pay attention to institutional investors' preferences, with Wealth Effects LLC being among the top 11 shareholders that control 50% of the company. Still, they cut their stake in Roku by nearly three-quarters during the fourth quarter, which raises concerns about the company's future growth trajectory. On the other hand, Roku's recent impressive Q4 2020 earnings result, exceeding analyst's expectations, makes it an attractive investment for those willing to endure the uncertainties of the stock market.