Roku Will Prioritize Growth Over Profits
The latest earnings report from Roku (NASDAQ: ROKU) featured plenty of good news, including year-over-year growth of 50% and better-than-expected earnings and revenue per share. So why did Roku's stock slide after the release of the report?
What's making some investors uneasy about Roku is its profitability. Net losses increased this quarter, and its earnings guidance makes it clear that Roku will not prioritize near-term profits over long-term growth. It will continue to spend to further its growth goals, and that spending will cut into profits.
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Source Fool.com
