3 Green Flags for Roku's Future
Roku's (NASDAQ: ROKU) stock closed at an all-time high of $479.50 last July. But today the streaming media hardware and software company's stock only trades at about $100 per share.
Roku's stock was crushed for four main reasons. First, its year-over-year growth in active accounts, streaming hours, and average revenue per user (ARPU) all decelerated over the past year as its stay-at-home tailwinds subsided in a post-lockdown world.
Second, its hardware business struggled with rising component costs and supply chain disruptions, which throttled its revenue growth and squeezed its gross margins. Third, the company ramped up its spending on original shows for its ad-supported Roku Channel as its core growth engines cooled off.
Source Fool.com
