Is Roku Stock a Buy?
Roku's (NASDAQ: ROKU) stock tumbled after the streaming media company posted its second-quarter results on Aug. 4. It easily beat analysts' estimates on the top and bottom lines, but concerns about its slower growth in active accounts and streaming hours, along with a negative gross margin at its hardware division, sparked an ugly sell-off. Does this post-earnings dip represents a buying opportunity, or signal worse things to come?
Roku's revenue surged 81% year over year to $645.1 million, beating estimates by $26.8 million and accelerating from its 79% growth in the first quarter. It generated a net profit of $73.5 million, compared to a loss of $43.1 million a year ago, and its EPS of $0.52 crushed estimates by $0.45.
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Source Fool.com
