Roku Stock Crash: Should Investors Buy, Sell, or Hold?
The past year has been a really rough time to be an investor in Roku (NASDAQ: ROKU), a leading streaming platform. Shares had already taken a massive beating over the past 12 months. And as if that wasn't enough, the stock price plummeted another 25% after Roku's second-quarter results thoroughly disappointed the market. While the shares have bounced back a bit in the past few days, they are still trading near their lowest price in two years.
It is quite understandable for any investor to contemplate selling their Roku shares at this time. There is no one-size-fits-all investing strategy. However, here's the key question investors should ask before hitting that sell button: Are Roku's poor second-quarter results driven by the company's declining business fundamentals and an extinguishing future opportunity, or is the reality more nuanced? Let's review.
Roku's total revenue for the second quarter of 2022 grew only 18%, reaching $764 million. Growth in its platform revenue -- which has been rising steadily and now makes up 88% of the total revenue -- was also step down at 26%. Total and platform revenue saw notable deceleration from the first quarter of 2022, when they grew 28% and 39%, respectively.
Source Fool.com
