Is Roku Stock a Buy?
The worst might be over for Roku (NASDAQ: ROKU). In mid-February, the streaming video specialist announced surprisingly strong sales growth while projecting an imminent return to adjusted profitability.
The company is still facing big challenges, though, including weak advertising spending and pricing pressures on its hardware sales. Against that mixed backdrop, let's look at whether the stock is a screaming buy given its sharp decline over the past year.
The big worry heading into Roku's fourth-quarter earnings report was that the digital-TV advertising market would continue its downward trajectory. In the third quarter, the industry fell 38% compared to a 17% drop in the prior quarter. Without at least a stabilization here, there was little reason to project a return to fast sales growth in the next several quarters.
Source Fool.com
