Roku stock

2022 - 2 - 17

Post cover — Image courtesy of "Barron's"

Roku Earnings Beat Expectations. Why Its Stock Is Tumbling. (Barron's)

The streaming pioneer reported fourth-quarter revenue of $865 million, a good bit short of Wall Street estimates.

Why Roku Stock Crashed Today (Motley Fool)

Investors are reassessing the streaming platform's growth potential as the pandemic subsides.

The company expects to grow revenue by 25% year over year, to $720 million, and generate adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA) of $55 million. Analysts had projected revenue and adjusted EBITDA of $748.5 million and $79.2 million, respectively. Moreover, the current market environment has been brutal for premium-priced growth stocks, particularly those that have seen their pace of expansion slow as the pandemic subsides. More worrisome is fierce competition from Amazon, which launched a new line of smart TVs in September. The number of hours streamed on its platform, in turn, increased 15% to 19.5 billion. As of 2 p.m. ET today, Roku's stock price was down more than 25%.

Roku stock plunges 25% as TVs become hard to find (New York Post)

Roku reported quarterly revenue that missed estimates, as the company was hit by supply chain issues that affected sales of television sets and its own...

Roku’s gross margins fell about 3% in the reported quarter. Issues caused by constraints in the global supply chain such as chip shortages and rising freight costs have affected the production of televisions among other electronics, raising prices of end products such as Roku’s streaming device. Roku reported quarterly revenue that missed estimates, as the company was hit by supply chain issues that affected sales of television sets and its own streaming devices, sending shares down 25% in Friday afternoon trading.

Roku Stock Tanks As Supply-Chain Issues Force Sales Miss, Low ... (Investor's Business Daily)

Roku stock fell after the streaming video platform missed Wall Street's Q4 sales target and guided lower for the year ahead.

Currently, Roku licenses its smart TV operating system to television manufacturers such as TCL and Sharp. Roku also makes set-top boxes and dongles for consumers to access streaming video services. Those areas include the Roku Channel and its advertising business as well as international expansion. "Verticals like restaurants and travel had strong growth, while auto and consumer packaged goods experienced supply-chain disruptions that had a negative impact on their product availability and therefore led to Q4 softness in advertising spend," Wood and Louden said. The San Jose, Calif.-based company said late Thursday it earned 17 cents a share on sales of $865.3 million in the fourth quarter. However, its player sales dropped 9% to $161.7 million amid global supply-chain disruptions. Meanwhile, Roku is exploring a plan to build its own smart televisions, according to a report. Roku stock plummeted more than 20% on the news. The Relative Strength Rating shows how a stock's price performance stacks up against all other stocks over the last 52 weeks. Roku ended 2021 with 60.1 million total active accounts, up 17% year over year. Roku forecast revenue growth of 35% for 2022. analysts' target of $3.77 billion. It blamed hardware shortages for the miss and cautious outlook.

Roku stock just had its worst day since 2018 (CNBC)

Roku shares slid Friday after the company reported a revenue miss on Thursday for the fourth quarter and gave first-quarter guidance that was below analysts' ...

Roku blamed the slower growth on supply chain disruptions that hit the U.S. television market. "On the monetization side, delayed ad spend in verticals most impacted by supply/demand imbalances may continue into 2022." The company posted revenue of $865.3 million, which fell short of analysts' projected $894 million. Analysts pointed to several factors that could lead to a rough period ahead. - Roku blamed the slowing revenue growth on continued supply chain disruptions impacting the U.S. television market. Revenue grew 33% year over year in the quarter, which is slower than the 51% growth rate it saw in the previous quarter and the 81% growth it posted in the second quarter.

Roku Stock Could Pop After Today's Earnings, But Don't Bet on It (Nasdaq)

Since that time, ROKU stock has fallen around 50% to now trade around $161 a share. That's nearly 70% lower than its July 2021 52-week high of $490.76. Slowing growth of Roku's streaming service coming out of ...

Roku has a lot to prove with its upcoming fourth quarter earnings. Any beat on these modest expectations will be seen positively by Wall Street and could help to move ROKU stock higher. Deutsche Bank (NYSE: DB) also recently maintained its “buy” rating on Roku stock with a price target on the shares of $300, which would be 89% higher than current levels. Roku has also guided for gross profit of $385 million, making the margin 43.1%. Wall Street will be watching for signs that the supply chain problems have begun to ease. Slowing growth of Roku’s streaming service coming out of the pandemic, combined with slower growth at competitors such as Netflix (NASDAQ: NFLX), has turned sentiment negative.