Why Roku Stock Dropped Today
Shares of Roku (NASDAQ: ROKU) are up more than 135% in the past 12 months due to robust growth in television streaming services, and its platform specifically. The company reported another strong quarter last night, but investors are looking at one item from the report that has the stock dropping today. As of 11 a.m. EDT, Roku shares were down almost 7% after dropping as much as 10% earlier in the trading session.
Roku reported net revenue jumped 81% versus the prior-year period, and platform revenue soared 117%. Average revenue per user (ARPU), an important metric for growth, also increased 46% year over year. And the company earned a profit of $0.52 per share, blowing past analyst estimates of $0.13 per share. So with all those positive results, why are investors selling?
Source Fool.com
