Shares of Roku
(NASDAQ: ROKU) lost 20.2% of their value in July 2022, according to data from S&P Global Market Intelligence. The media-streaming technology company's stock was doing just fine for most of the month, trading 3.7% higher on the eve of its second-quarter earnings report. Then, Roku reported its financial results on July 28, and share prices plunged 23.1% the next day.Roku's top line rose by 18% in the second quarter of 2022, landing at $764 million. The bottom line swung from earnings of $0.52 per share to a net loss of $0.82 per share. Your average analyst had expected a smaller loss of $0.68 per share on revenue near $806 million. Looking ahead, Roku's management issued Q3 revenue guidance of approximately $700 million, far below the Street's consensus view of $901 million.The sharp price correction that followed made some sense, given the company's dramatic underperformance and management's modest projections for next quarter. Roku is experiencing weak advertising sales due to the challenging economic backdrop. The soft guidance was based on the assumption that inflationary pressure and economic uncertainty will continue to keep advertiser spending low throughout the third quarter.Continue readingWeiter zum vollständigen Artikel bei "MotleyFool"