Why Things Could Get Worse Before They Get Better for Roku

Roku (NASDAQ: ROKU) is a business that should do well as streaming services rise in popularity. Roku TVs and streaming sticks let users access a variety of content, as the company's platform can be a convenient hub for consumers with subscriptions to multiple streaming services. Plus it has free content of its own.

However, the company has been struggling to generate the same level of growth it achieved last year. And with a poor outlook for the economy, the growth stock has crashed 74% this year (by comparison, the S&P 500 is down just 17%). The danger is that things could get even worse for Roku in the months ahead.

This year has been a tough one for businesses, as rising costs have been making it difficult for companies to pursue growth opportunities. One place where that has been evident is in ad spending, where Roku is vulnerable. Here's how sharply its revenue has cratered this year:

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Source Fool.com