Why Roku Stock Is Down 85% This Year
Shares of media-streaming technology veteran Roku (NASDAQ: ROKU) have taken an 85% haircut in 2022. At the same time, the business is booming in many ways.
Trailing sales are up 31%, as measured at the end of each year's second quarter. The company boosted its sales and marketing budget by an even steeper 73% over the same period. The generous marketing spending suggests that management sees this year as an excellent time to invest in future growth.
So Roku's stock price is plunging in a period of skyrocketing sales, with signs pointing to continued high-octane growth. As it turns out, there are arguably solid reasons for the drooping stock chart. But I still think Roku is a fantastic buy at these bargain-bin share prices.
Source Fool.com
