Why Roku Stock Plunged 19% in 2024
(NASDAQ: ROKU) stock dropped 18% in 2024 according to data provided by S&P Global Market Intelligence. The market was wary of competition and is losing patience with its losses.
Roku is the top U.S. streaming platform. More people buy and use its streaming devices than any competitor, including Amazon. It's also the top platform in Canada and Mexico, and it's starting to make a bigger play for international business.
The device business comes with low margins. Even though it's what Roku's known for commercially, Roku actually makes much more money from its ad segment. The two work together, though, in an important dance. When users buy a Roku device, they get a Roku account to access all of the streaming networks available on the platform, including Roku's free channels. More users means more viewers and more space for Roku to place ads and make more, higher-profit sales. The ad business accounted for 85% of the total in the 2024 third quarter and produced a 54.2% gross margin.
Source Fool.com
Roku Stock
With 48 Buy predictions and 2 Sell predictions Roku is one of the favorites of our community.
With a target price of 93 € there is a slightly positive potential of 1.46% for Roku compared to the current price of 91.66 €.
