Roku's $111 Million Loss: The Small Detail Only Smart Investors Saw
Shares of streaming-TV platform company Roku (NASDAQ: ROKU) are down more than 80% from their all-time high. The stock continued its downward slide after the company reported second-quarter financial results on July 28. For the record, Q2 resulted in a whopping $110.5 million loss from operations.
Growth investors often dismiss operating losses, assuming the company is investing for growth. That's true of Roku. However, there's one detail in this operating loss that bears pointing out. And it's not good.
For context, Roku generated Q2 revenue of $764 million, up 18% year over year. However, two primary factors robbed the company of a better bottom line. First, its gross margin fell. And second, its spending increased.
Source Fool.com
