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I'm Not Worried About This Struggling Tech Stock


Shares of streaming company Roku (NASDAQ: ROKU) have been beaten down so severely in this bear market that the stock price is up more than 40% over the past month but is still trading down 85% from its former highs! The company's recent fourth-quarter earnings showed shrinking margins and guided for $700 million in first-quarter revenue, below the $733 million it made in the first quarter two years ago.

So, do Roku's falling revenue and profit margins make the recent share price gain a selling opportunity? I'm not so sure, and I'd caution against rushing out to place that sell order.

Here are three reasons I'm not worried about Roku's long-term prospects.

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Source Fool.com

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