Roku stock

2022 - 7 - 28

Post cover — Image courtesy of "Markets Insider"

Roku stock price sinks after Q2 earnings miss on profit, outlook (Markets Insider)

Roku shares dropped as much as 27% on Friday after the streaming service missed Q2 results and warned of a Q3 revenue shortfall.

The company swung to a second-quarter loss of $0.82 a share from earnings of $0.52 a share a year earlier. Revenue for the quarter ended June 30 did rise to $764.4 million from $645.1 million a year ago. Platform revenue increased 26% to $673 million from a year ago, but Roku said that growth was lower than expected.

Roku plunges 25% after missing earnings (CNBC)

The company posted earning losses of 82 cents per share and revenues of $764 million, both well below consensus estimates, as the ad sales and device sales ...

Other tech companies that rely a lot on advertising business also posted poor second-quarter results recently. "However, macro headwinds such as rising inflation and supply chain disruptions are having a severe impact on the business – both on the advertising side and the engagement side through lower consumer discretionary spending." Roku attributed the loss to tough macroeconomic conditions such as inflation and supply chain that could hurt the selling of Roku TV and other devices.

Roku stock plummets as earnings are widely panned: 'The sum of all ... (MarketWatch)

Shares of Roku Inc. were tumbling in premarket trading Friday after the streaming company acknowledged a "significant slowdown" in advertising spending that ...

“There is significant runway ahead for shifting ad dollars from linear TV to digital, and Roku is poised to take meaningful share of this shift.” “Roku’s 2Q22 featured ad-recession headwinds that as the earnings cycle progressed had become increasingly predictable,” he wrote. “While that could happen later in this cycle, in the near term it looks as though marketers are cutting budgets on CTV because they can. “Obviously, this is not an ideal market structure,” the analysts wrote. “We expect these challenges to continue in the near term as economic concerns pressure markets worldwide” Roku faces its own challenges, in their view, since the company must compete with tech giants and TV makers as it tries to ensure that more people stream content on Roku devices or platforms.

Roku Stock Dives Following Downbeat Earnings Outlook (Nexttv)

Shares traded at $65.20, down from $85.17 at the close on Thursday and a 52-week high of $449.60 a year ago. “Roku reported a frankly awful 2Q and 3Q guidance ...

“Roku’s growth is slowing as advertisers ‘significantly curtail or pause spend in the scatter market," Cahall said, quoting Roku’s letter to shareholders. “While the company was clear that a consumer slowdown in player sales were to blame, we think the scale of this deceleration (2Q 2022 revenue growth was 18% vs. “Despite all of these concerns, we could not have imagined the incredibly weak 3Q 2022 guide of only 3% growth in total net revenues vs.

Is Roku Stock a Buy After Its Spectacular Fall From Grace? (Motley Fool)

Investors have turned the channel on the streaming pioneer, but that could be a mistake.

Using this success as a template, Roku is strategically entering a number of international markets using the same strategy. By providing gateway products -- namely, its namesake streaming devices and the Roku operating system (OS) for connected TVs -- the company is well-positioned to benefit from this secular trend. The company went on to say that consumer spending was also moderating, resulting in the sale of fewer Roku streaming devices and connected TVs. Furthermore, the Roku OS is the No. 1 selling smart-TV OS in the U.S. and No. 2 in Mexico, where 1 in 4 smart TVs sold was a Roku model. And finally, Roku stock is currently trading at roughly three times trailing-12-month sales -- its lowest valuation in years. As with so many things, the answer won't be the same for every investor, but there are plenty of catalysts that could propel Roku stock higher in the months and years to come. This suggests that, even in the face of slowing growth, Roku is able to increase the value of each user. The company also withdrew its full-year outlook, citing "the uncertainties and volatility in the macro environment." As a result, Roku's profit swung to a loss, with a loss per share of $0.82. Unfortunately, that's exactly how things have played out for Roku ( ROKU -25.01%). The company released its second-quarter financial results after the market close on Thursday, and they were dismal. The ongoing economic uncertainty caused by rising interest rates, the bear market, and 40-year-high inflation is causing businesses to tighten their purse strings. In the second quarter, preliminary data revealed that U.S. gross domestic product (GDP) decreased for the second successive quarter, suggesting the country is currently in a recession.

Roku Stock Is Heading For Its Biggest Drop Ever. Analyst Calls ... (Barron's)

Pivotal Research analyst Jeffrey Wlodarczak says the stock is likely to remain under pressure, noting that expenses are rising fast as the economy weakens.

and Google—rivals in the streaming business—are gaining more power. Jeffrey Wlodarczak, who rates the stock at Hold, noted that expenses are rising fast as the economy moves toward a recession, and at a time when Roku stock cratered after the video-streaming company’s earnings fell far short of expectations, and a Pivotal Research analyst doesn’t expect it to bounce back.