Why Roku Stock Crashed Hard in the First Half of 2022
Shares of Roku (NASDAQ: ROKU) fell 64% in the first half of 2022, according to data from S&P Global Market Intelligence. The media-streaming technology expert's stock was tangled up in Wall Street's general retreat from high-flying growth stocks, accelerated by an underwhelming fourth-quarter earnings report.
Roku reported disappointing fourth-quarter results in February, and the stock closed 22.3% lower the next day. In that business update, quarterly revenues rose by 33% year over year with large increases in customer counts, hours of viewer engagement, and gross profits. However, your average analyst was looking for 38% top-line growth and stronger profits.
That was the sharpest drop in a long string of volatile market gyrations. Many investors felt that richly valued growth stocks like Roku were overdue for a price correction in early 2022, due to galloping inflation metrics and lower consumer confidence in the economy.
Source Fool.com
