Roku Stock Is Tumbling Friday - Here's Why
Portfolio Pulse from Anusuya Lahiri
Roku, Inc. (NASDAQ:ROKU) stock fell after reporting Q4 results with higher revenue but a larger EPS loss than expected. Despite beating revenue forecasts, its EPS loss of $(0.55) was below the expected $(0.54). Roku anticipates Q1 revenue above consensus, added 4.2 million net accounts, but saw a 4% decrease in average revenue per user. Analyst Jason Helfstein downgraded Roku to Perform. Roku introduced premium TVs and partnered with GroupM for ad buying. Its success is partly tied to Netflix's ad-supported tier expansion.
February 16, 2024 | 4:34 pm
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NEGATIVE IMPACT
Roku's stock fell after Q4 earnings showed higher revenue but a larger EPS loss than expected, and an analyst downgrade.
The stock's decline is directly tied to its Q4 earnings report and subsequent analyst downgrade, indicating a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Walt Disney Co's partnership with Roku and others for ad buying could influence its streaming ad revenue.
Disney's involvement in the ad buying partnership with Roku and others could positively impact its streaming ad revenue, though the direct effect on stock is less clear.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Alphabet Inc's YouTube, through its partnership with Roku for ad buying, may see an impact on its ad revenue.
The partnership for ad buying between YouTube and Roku could positively affect YouTube's ad revenue, though the direct impact on Alphabet's stock is less certain.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
Netflix's expansion of its ad-supported tier, crucial for Roku's success, could significantly impact its advertising revenue.
Netflix's commitment to expanding its ad-supported tier is a critical factor for Roku's success, indicating a potential positive impact on Netflix's advertising revenue.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 70