Economic headwinds continued to put pressure on Roku (NASDAQ: ROKU) in the third quarter. Revenue growth slowed to 12%, and the company reported a loss of $122 million, down from a profit of $69 million last year. Those dismal results can be traced back to high inflation. Consumers contending with high inflation are spending less, and brands have compensated by reducing their ad budgets.

Worse yet, management provided disappointing guidance, forecasting an 8% decline in fourth-quarter revenue. That shocked Wall Street. The holiday season is typically a period of robust growth for ad-based businesses, but Roku says brands are still reducing ad spend due to economic uncertainty.

That news sent Roku's share price plunging 19% after hours yesterday. But that knee-jerk reaction creates a buying opportunity for patient investors. Here's why.

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Source Fool.com