Roku Investors Need To Hear What Reed Hastings Just Said
Not much has gone right for Roku (NASDAQ: ROKU) this year. After the stock price surged during the pandemic, shares have collapsed this year, down 77% year to date and nearly 90% from their peak last year. Revenue growth abruptly stalled out, coming in at 18% in the second quarter and with guidance calling for just 3% growth in the third quarter.
With its digital advertising peers, like Alphabet and Meta Platforms, reporting weak earnings, Roku is likely to face substantial headwinds for at least the second half of the year, if not well into 2023 or as long as advertisers fear a recession. However, there's at least one reason to believe in the stock's long-term opportunity.
Netflix (NASDAQ: NFLX) Co-CEO Reed Hastings has long been a visionary and doesn't hesitate to share his insights on the industry. In 2015, Hastings predicted that linear TV would decline every year for the next 20 years while streaming TV grew, a prediction that has since been borne out.
Source Fool.com
