It seems that Roku (NASDAQ: ROKU) stock isn't done declining. The streaming video giant's shares, which were already sharply down in 2022, slumped immediately following its early November earnings report. Wall Street is worried about a tough holiday season ahead as advertising spending slows and consumers spend less on new entertainment devices.

Roku's management team is more focused on the bright long-term future for the business, which is steadily adding users and reporting strong engagement. Those wins might position Roku for an impressive recovery once the advertising market rebounds. But should investors wait for clear evidence of that improvement before buying the stock?

Let's take a closer look.

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Source Fool.com