Don't Bury Roku: It's Not Dead Yet
It takes a lot to send a stock reeling just minutes before it reports fresh financials. Shares of Roku (NASDAQ: ROKU) plummeted nearly 7% on Thursday. It was a rough day for high-octane growth stocks, but some of the market's streaming leaders clawed their way back to positive gains by the end of the day. Roku got left behind.
One can argue that investors feared Roku would disappoint the market with its first-quarter performance. We've seen high-flying stocks swoon even after largely decent quarterly updates. The rub here is that the stock closed on Thursday 42% below the all-time high it hit less than three months ago. There was no crust of optimism on this earnings pie.
The market was more indifferent than outright bearish with Roku. The stock's short interest is a third of what it was a year ago. Wall Street had come down with Roku fatigue. Bulls and bears alike were ho-hum about the streaming pioneer, probably figuring that it would be hard for it to come through with monster financials after packing years of growth into just a few months during the pandemic. Roku was about to give everybody who'd left it for dead a big surprise.
Source Fool.com
