I'm Still Not Giving Up on Roku
Shares of Roku (NASDAQ: ROKU) opened sharply lower on Friday after a blistering financial update. With at least three Wall Street analysts putting out cautious notes in the week leading up to its grim report, it's not shocking to see an earnings report fail to live up to expectations.
I was hopeful. I was wrong. Roku's plummet to close out the trading week is fair. You don't hose down near-term guidance -- sharply -- and withdraw full-year guidance without getting roughed up. The ad market has softened swiftly, even for Roku's connected TV stronghold that should've held up better than other marketing markets. The weakness on the hardware end that has held back the last few quarters is clearly more than just a supply chain issue. After all, it's fairly easy to get a Roku dongle -- even at a discount -- these days.
Roku is experiencing growth pains. The stock is gnashing two-year lows. I feel it can recover from this, but -- for the sake of full disclosure -- I've been wrong before. I was wrong earlier this week. Let's see why I feel that Roku will recover from this admittedly well-earned, post-earnings sell-off.
Source Fool.com
