Why Roku Stock Skyrocketed 38% This Week

Shares of Roku (NASDAQ: ROKU) are up 38.5% this week as of Thursday's close, according to data provided by S&P Global Market Intelligence, after the media-streaming specialist announced strong quarterly results and a better-than-expected forward revenue outlook.

Indeed, shares of Roku popped more than 30% on Thursday alone after the company told investors its third-quarter revenue grew 20% year over year to $912 million -- well above the $855 million most analysts were modeling. On the bottom line, that translated to a net loss of $330.1 million, or $2.33 per share -- technically wider than consensus estimates for a loss of $2.12 per share.

Roku's top line included an 18% increase in platform segment revenue to $787 million and a 33% increase in device sales to $94.2 million. Meanwhile, Roku grew its number of active accounts by 2.3 million sequentially from last quarter to 75.8 million -- also well above Wall Street's estimates for a total closer to 75.3 million. Streaming hours were 26.7 billion during the quarter, up 4.9 billion from the same point a year ago. Average revenue per user, however, declined 7% year over year to $41.03.

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Source Fool.com