With 76 million active accounts that streamed nearly 27 billion hours of content in the third quarter last year, (NASDAQ: ROKU) is the leading smart-TV operating system in the U.S., Canada, and Mexico. The business has and will continue to benefit from the ongoing cord-cutting trend.

Although this streaming stock had a monster year in 2023, up 125%, it remains 82% below its peak price. Investors looking to add a beaten-down growth company to their portfolios are probably considering Roku right now.

But before you press the buy button, it's a smart idea to understand a key risk with this business. Let's take a closer look at Roku.

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Source Fool.com