Roku's Long-Term Focus Is Being Overshadowed

Roku (NASDAQ: ROKU) disappointed investors in its fourth quarter with revenue coming in below the company's own outlook. And now, the company expects revenue growth to continue to slow in the first quarter, predicting it will climb just 25% year over year. Its full-year growth outlook is slightly better, at 35%, but still below expectations. And with a step-up in investments, management sees earnings falling back down to 2020 levels.

The subsequent sell-off of Roku shares is deserved. But the long-term outlook for the company remains strong. Let's see why.

Image source: Roku.

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Source Fool.com