3 Reasons to Sell This Explosive Stock in 2023
After its initial public offering in Sept. 2017, Roku (NASDAQ: ROKU) shares skyrocketed 1,940% to hit their all-time high in July 2021. The new streaming ecosystem was booming, riding the broad secular shift away from cable TV and toward internet-enabled video entertainment. But general macro weakness and decelerating growth have helped spur a stock decline of 89% since.
After that dramatic fall, Roku's stock now sells at a compelling price-to-sales ratio of 2.3. But this cheap valuation doesn't immediately make the stock a no-brainer buy. In fact, shareholders might want to think about selling the business. Here are three reasons why this might be a good idea.
Looking back to 2015 and the earliest available data on the company's financials, Roku has been unprofitable in every single year except 2021, when the pandemic was still providing a demand boost to stay-at-home businesses. Considering the cumulative forecast net loss of about $506 million in 2022, Roku will be in the red again for that year.
Source Fool.com
