Known to consumers mostly for its hardware devices and integration with smart televisions, Roku (NASDAQ: ROKU) has become a leader in the streaming space. Its revenue comes primarily from selling ads -- and as advertising shifts away from linear TV and more toward streaming, Roku is positioned to benefit.

Yet, when Roku reported its second-quarter 2022 earnings, the market reaction was swift and severe, and the stock dropped almost 18% the next day. There's no doubt that there were weak headline numbers and troubling guidance in the report.

However, Roku's path to long-term success is still on track. After digging in a little deeper into the results, I'm not selling. Let's look at why.

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Source Fool.com