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Roku, Inc. (ROKU) Stock Plummeted in Aftermarket Following its Earnings Release

Roku, Inc. (ROKU) is a global leader and pioneer in TV streaming. The company is dynamically engaged in the build-up and monetization of a large number of audiences for content publishers. The company also provides the promoters with exceptional capacity to engage the customers. The company develops TV-related audio devices and streaming players for the customers.

The price of ROKU stock during the regular trading on February 17, 2022, was $144.7 with a significant drop of 10.3%. At last check in the aftermarket, the stock nose-dived by 22.3%.

ROKU: Key Financials

On February 17, 2022, ROKU released its financial results for the fourth quarter ended December 31, 2021. Some of the key highlights are as follows.

Revenue

Total net revenue recorded in Q4 2021 was $865.3 million compared to $649.8 million in the same quarter of 2020. The revenue increased by 17% over the year. The company missed the analysts’ estimated revenue target of $894 million.

Net Income per Share

Diluted net income per share in Q4 2021 was $23.6 million or $0.17 compared to $67.3 million or $0.49 in the same quarter of 2020. The company topped the analysts’ estimated EPS of $0.04. The EPS increased over the yearly period.

ROKU: Events and Happenings

On February 8, 2022, ROKU updated about launching a free, live channel ‘This Old House Makers Channel’, which featured key craft workers exhibiting their amazing woodworking, metalworking, and building skills. The channel started on February 8th on the company’s official channel. On February 2, 2022, ROKU informed about expanding its advertising business to Mexico by collaborating with Entravision. Both the partners agreed upon allowing the content providers to reach more customers via ad-supported content.

On February 1, 2022, ROKU reported about launching Nielsen’s Digital Ad Ratings audience guarantees on OneView. OneView customers are now able to choose a specific age and gender demographic and pay only for the ad impressions that reach their targeted audience. On February 1, 2022, ROKU announced premiering ‘Swimming with Sharks’, on the company’s official channel in April. It is a scripted drama featuring the grey areas of the Hollywood studio system.

On January 27, 2022, ROKU reported that it is Canada’s #1 TV streaming portfolio, based on streamed hours, the study conducted by the Hypothesis Group.

Conclusion

ROKU stock is 58% down the past six months as the companies are affected by the pandemic globally. The aftermarket stock drop is the result of the company’s financial statement release which displayed that the company missed the estimated revenue target.

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