Why Roku Stock Is Soaring on Friday
Shares of media-streaming technology expert Roku (NASDAQ: ROKU) painted a rosy picture on Friday, inspired by the company's strong second-quarter earnings report. Roku's stock price was up by 20.5% at 10:30 a.m. ET today as investors embraced the robust report.
Three months ago, management set up modest guidance targets for the second quarter. Top-line revenue was expected to stay flattish year over year at roughly $770 million. The bottom line was aimed at a net loss of $175 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) pointed to a substantial loss in the neighborhood of $75 million.
The actual report blew all of Roku's guidance targets out of the water. Sales rose 11% year over year to $847 million. Earnings were still negative, but the unadjusted net loss came in at a milder $126 million, and the EBITDA pain stopped at just $18 million.
Source Fool.com
Roku Stock
The stock is one of the favorites of our community with 48 Buy predictions and 1 Sell predictions.
At the moment Roku has reached the predicted target price of 131 €, with a current price of 130.28 €.
