For the second quarter (ended June 30), (NASDAQ: ROKU) reported revenue of $847 million and a loss per share of $0.76. Both figures beat Wall Street estimates by a wide margin, sending the stock higher immediately following the financial update. And as of July 31, shares are up a ridiculous 132% in 2023, crushing the Nasdaq Composite Index.
But before rushing to buy the stock because of its strong momentum this year, investors should take the time to better understand the bear and bull cases for Roku. Here's a closer look at both sides of the argument with this popular streaming stock. Only then can you make a more informed decision for your portfolio.
The easiest bear argument to make for Roku is that the business continuously loses money. The company posted a nearly $500 million net loss last year. And through the first six months of 2023, the net loss totaled $301 million. Growth companies like Roku promise that they will be able to achieve net income at some far-out future date, but this outcome is always full of uncertainty.
Source Fool.com