The Ups and Downs of Roku's Blowout Quarter

Friday proved to be initially euphoric but ultimately a dud for Roku (NASDAQ: ROKU) investors. Shares opened 7% higher after the streaming-video pioneer posted blowout fourth-quarter results the night before. But Roku surrendered all those gains by the third hour of trading, continuing to drift lower to close out the trading day with a 6% decline.

A roughly 1,362-basis-point swing from Friday's opening bell to the finish line is rough. Adding insult to injury, it's not as if Roku shares buckled with the market, as most of the major indices inched higher for the day.

The reason for the stock's slide is more obvious than you might think.

Source Fool.com