Slower Ad Spending Tanks Roku's Growth. Time to Sell the Stock?
Like many consumer-facing stocks, Roku (NASDAQ: ROKU) continues to suffer from a lockdown-induced hangover. After delivering robust gains driven by pandemic restrictions, growth has been much harder to come by recently.
A one-two punch of tough comps and even tougher macroeconomic conditions have the streaming pioneer on the mat, down 83% compared to last year's high. When the company reported its third-quarter results, some investors changed the channel rather than stick around for the closing credits.
Roku's net revenue of $761 million grew 12% year over year, while swinging from a profit to a loss per share of $0.88. For context, analysts' consensus estimate called for revenue of $696.2 million and a loss per share of $1.29, so Roku cleared both bars with ease. However, there's a plot twist ahead. (More on that in a minute.)
Source Fool.com
