Roku (NASDAQ: ROKU) had more bad news for investors in its recent third-quarter update. The advertising industry is still contracting, and the pace of those declines is accelerating, management said. That pressure will cause sales to fall in the core streaming platform segment in Q4 and will likely stick around at least into 2023, they warned.
Roku is in no danger of losing its valuable leadership position in a streaming video niche that's likely to grow for many more years. It is attracting new users and more engagement, and the company has some exciting product and device launches on the way aimed at making the platform even more valuable.
But a few red flags should have investors thinking twice about calling the stock a screaming buy after the price has declined sharply in 2022. Let's look at two of the biggest.
Source Fool.com