Did I Make a Mistake Buying Roku Stock Last Week?
I did something recently that I only typically do when I'm checking out at a grocery store: I made an impulse purchase. In the closing minutes of trading on Thursday, with Roku (NASDAQ: ROKU) set to report fourth-quarter results later in the afternoon, I added to one of my largest positions.
I wasn't planning on growing my stake in the leading streaming TV platform. However, with the stock trading nearly 11% lower on the day, I figured it was worth a shot. It briefly dawned on me that maybe some more-connected investors knew it would be a bad report, but I didn't dwell on the theory. I've seen a lot of stocks move lower heading into a potentially problematic earnings report, only to come out flying after delivering blowout results.
Would my impulse purchase of a stock that I figured I knew well (and couldn't possibly head lower) pan out? Well, Friday wasn't exactly kind. The stock tumbled 22% following the report, as revenue fell woefully short of expectations and guidance proved problematic. Roku shares did climb 8% on Tuesday, but no one is going to call a decline of nearly 16% over two trading days a success. I'm down, but I've got time, so I'm definitely not out.
Source Fool.com
