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Why Roku Stock Bounced Higher Today

TheMotleyFool

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Shares of Roku (NASDAQ: ROKU) were up 5.9% as of 1:49 p.m. ET on Wednesday. The stock was rebounding after a sudden drop the day before when social media company Snap cut its financial guidance for the second quarter.

Both Roku and Snap make the bulk of their revenue from advertising, so investors took Snap's revised guidance as a red flag about near-term ad spending. The news reverberated across other social media stocks, such as Meta Platforms and Pinterest.