Roku Was Not Kidding When It Said It Would Absorb Higher Costs
The coronavirus pandemic is disrupting supply chains worldwide. An outbreak at a manufacturing plant, seaport, or logistical facility could slow the production and movement of goods.
As many of us learned in beginning economics courses, when supply decreases, prices increase. That is what's happening right now for Roku (NASDAQ: ROKU). However, unlike many other businesses, Roku is currently absorbing higher costs rather than passing them along to the consumer. Let's look at the consequences that decision had on Roku's fourth-quarter results.
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Source Fool.com