Roku (NASDAQ: ROKU) reported revenue growth of 14% in the fourth quarter of 2023, which was better than Wall Street's consensus analyst estimate. But management also talked about a challenging industry environment, which explains why shares took a huge hit following the earnings announcement.

Although the streaming stock has soared 77% since the start of 2023, it remains 85% below its all-time high. However, investors who see this as a bargain opportunity should know three things about the business first.

Investors are undoubtedly familiar with the top streaming services out there, like Netflix, Walt Disney, and Amazon Prime Video, to name just a few. These companies spend billions of dollars to produce and license content, which they directly serve to viewers in a subscription format.

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Source Fool.com