Where Will Roku Be in 1 Year?
It's been a challenging year for streaming giant Roku (NASDAQ: ROKU). The company is struggling amid macroeconomic challenges, its financial results have been subpar, and investors have sold off the stock, which is down by a whopping 75% year to date. What's more, the markets are still dealing with inflation, and some experts have predicted that a recession could be on its way within a year.
How will Roku respond to these headwinds in the coming few quarters? Let's dig in and find out where the company could find itself by this time next year.
Roku makes much of its revenue from its advertising business. But many companies have decreased their ad budgets. With rampant inflation and lower consumer spending on many goods and services, that's not surprising. Roku is still growing its advertising-related top line, which it records in its platform segment. During the third quarter, the tech company's platform revenue increased by 15% year over year to $670.4 million.
Source Fool.com
