The company posted $764.4 million in revenue, growing by 18.5% year-on-year (YoY), while analysts expected a 25% growth; thus missing estimates by $40.2 million. Further, the earnings per share (EPS) was -$0.82, missing estimates by $0.13. Other highlights included platform revenue rising by 26% YoY to $673 million and gross profit being up by 5% YoY.
ROKU chart and analysis
Both the short-term and long-term trends for ROKU are negative as the stock traded between $64.25 and $97.93 over the past month. The after-hours move has also pushed the stock far below all daily Simple Moving Averages (SMAs), on increased trading volume. At the moment, the resistance is at $69, while support is located at $60.58. Presently, analysts rate the shares as a moderate buy, seeing the average price in the next 12 months reaching $124.19, 45.81% higher than the current trading price of $85.17. Some of the metrics Roku showed investors indicated that the company is still growing, for example, the firm added 1.8 million incremental active accounts, reaching a total number of 63.1 million. However, streaming hours fell by 0.2 billion compared to the last quarter, but still, Roku totaled 20.7 billion streaming hours. While investors digest the numbers the company showed, and get to grips with what the slowing ad spending will mean for the future of the company, market participants can expect more volatility for ROKU in the short term. Buy stocks now with Interactive Brokers – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
