Streaming company Roku (NASDAQ: ROKU) was one of Wall Street's hottest growth stocks during the pandemic. Unfortunately, a decline in spending across the advertising industry has dumped water on Roku's momentum. Growth is grinding to a halt, and investors are dumping the stock like a hot potato.

There's no denying that times are tough today, but that doesn't mean Roku's future isn't still bright. I don't have a crystal ball, but I can show you two big reasons investors should look for Roku to survive the current downturn and thrive over the long term.

Roku's problems are coming from two directions right now. On the one hand, inflation is pumping up the cost to manufacture hardware, streaming sticks, and other products it sells. The gross margin on hardware fell by 4.2 percentage points year over year to negative 19.2% in the third quarter. That's the equivalent of spending a dollar to make something and then selling it for $0.81.

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Source Fool.com