1 Thing to Watch Before You Buy Roku Stock
Roku (NASDAQ: ROKU) has had a difficult 2022 to say the least. After posting 56% revenue growth in 2021, the business has seen its sales gains shrink to just 12% in the most recent quarter. A softer digital ad market has also caused management to forecast a year-over-year revenue drop of 8% in the fourth quarter. And consequently, the stock is down 83% this year.
If you're thinking about becoming a shareholder in this top streaming stock, there's one important factor you must consider. Let's take a closer look at what that is.
Roku's business operates two different segments. The one that most investors are probably familiar with is called the Player segment, which includes sales of the company's media sticks. Five years ago, in Q3 2017, this segment represented 54% of overall revenue. In the most recent quarter (Q3 2022), this segment accounted for just 12% of company sales.
Source Fool.com
