Why Roku Stock Is Crashing Today
Shares of media-streaming technology expert (NASDAQ: ROKU) took a swan dive on Thursday, after the company reported third-quarter results on Wednesday evening. The stock was down by 20.6% at 11:45 a.m. ET.
The third-quarter report was quite solid. Revenue rose 16% year over year to $1.06 billion. Gross profit increased by 30% and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) more than doubled. All three metrics exceeded Roku's official guidance targets. Roku's results also beat Wall Street's consensus estimates across the board.
So the headline numbers looked good, but Roku's report wasn't perfect. The previous quarter's guidance suggested that the platform division should accelerate its sales growth from the third quarter to the fourth, but Roku's management now sees that segment's year-over-year growth slowing down from 15% to 14%. At the same time, the company will stop reporting certain business metrics in the first quarter of 2025, raising fears of reduced financial transparency.
Source Fool.com
Roku Stock
With 47 Buy predictions and 1 Sell predictions Roku is one of the favorites of our community.
With a target price of 93 € there is a slightly positive potential of 2.93% for Roku compared to the current price of 90.35 €.
