Why Roku Stock Crashed and Burned Early Thursday
Shares of Roku (NASDAQ: ROKU) turned sharply lower Wednesday, cratering as much as 18.1%. As of 10:23 a.m. ET, the stock was still down 16.3%.
The overall market slump added fuel to the fire, but it was the streaming pioneer's quarterly financial report that took center stage -- and investors did not like what they saw.
For the third quarter, Roku generated revenue of $761 million, up 12% year over year, driven by active accounts of 65.4 million, which grew 16%. Platform revenue grew 15% but was offset by player revenue that fell 7%. This weighed heavily on the company's bottom line, resulting in a loss per share of $0.88, compared to earnings per share of $0.52 in the prior-year quarter.
Source Fool.com
