Is Roku Stock a Buy After Its Spectacular Fall From Grace?
In the second quarter, preliminary data revealed that U.S. gross domestic product (GDP) decreased for the second successive quarter, suggesting the country is currently in a recession. The ongoing economic uncertainty caused by rising interest rates, the bear market, and 40-year-high inflation is causing businesses to tighten their purse strings. One of the first line items on the income statement to face cuts is often the advertising and marketing budget, a line that's easy to adjust in the short term.
Unfortunately, that's exactly how things have played out for Roku (NASDAQ: ROKU). The company released its second-quarter financial results after the market close on Thursday, and they were dismal. The combination of lower ad spending and the decelerating growth in streaming video have hit the stock hard, and it's down more than 80% from highs it reached last year.
That leads to the inevitable question: Is Roku stock a buy after its spectacular fall from grace? Here's what investors need to know.
Source Fool.com
