Roku stock drops 23% after missing earnings

Shares of Roku closed down 23% on Friday, a day after the company reported second-quarter earnings that missed both opening and closing estimates.

Company post income loss 82 cents per share and revenue of $764 million, both below consensus estimates, as ad and device sales remain under pressure. Roku also gave its third-quarter forecast $200 million below expectations and said it was pulling back its full-year growth estimate.

Roku said that losses due to difficult macroeconomic conditions such as inflation and supply chains could affect sales of Roku TVs and other devices. It also warned that pressure from the ad market downturn could continue.

“We believe this rollback reflects the start of the pandemic in 2020, as marketers prepare for macro uncertainties by rapidly reducing ad spend across all platforms.” Roku said in a letter to shareholders.

Susquehanna low class Roku shares Friday at neutral and reduced its price target to $70 from $200.

In this illustration, a hand holding a TV remote control points to a screen displaying the Roku logo.

Rafael Henrique | Lightrocket | beautiful pictures

“We continue to see CTV as the next growth step in digital advertising and still believe ROKU is one of the companies best positioned to capture the CTV opportunity,” wrote analyst Shyam Patil. in the long term. “However, macro constraints such as rising inflation and supply chain disruptions are having a severe impact on business – both in terms of advertising and interactions through consumer discretionary spending. lower consumption.”

Other technology companies that rely heavily on the advertising business also posted poor results in the second quarter. For example, Snap and Twitter both posted poor income, while Meta attributed its weak financial results to macroeconomic conditions and “weak advertising demand environment. “

Roku has lost more than 62% of its value this year.

Source link


News7F: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Back to top button