Down 65%, Is Roku Stock a Buy?
Roku's (NASDAQ: ROKU) second-quarter earnings report reflects ongoing challenges with the slowdown in the advertising market, but there were plenty of bright spots. Active accounts grew 14% year over year, and the increase in total streaming hours on the platform grew to 19% year over year.
While revenue growth is decelerating rapidly due to weakness in advertising, Roku still posted a respectable 28% increase in total revenue year over year. Should investors take that performance as a buy signal?
To answer that question, we need to look at how Roku is performing relative to the connected TV advertising market. This is a fast-growing market, so if Roku is gaining market share, investors could be looking at a great buying opportunity with the stock trading at rock-bottom prices.
Source Fool.com
