Roku, Inc. Class A Stock News

Shares of the streaming company are down 25% this year.

As the Fed starts its interest rate cut cycle, many dynamic factors historically come into play. Rate cuts tend to stimulate consumer spending and construction activity since borrowing costs get cheaper.

Shares of Roku have dipped sharply after posting Q3 results, owing to a less-than-optimistic adjusted EBITDA outlook for Q4. However, management has noted that the timing of sales and marketing expenses is more seasonal this year, with a heavier load in Q4. I'd focus much more on the company's acceleration in platform revenue growth, which is expected to continue into Q4.

The company is putting up strong growth, but is weighed down by poor profit figures.

Which of these pandemic-era growth plays is still worth buying today?

There's a clear logic to the knee-jerk response. But there's also far more to the story.

These two pandemic darlings have been completely forgotten.

Roku, Inc. reported strong Q3 2024 results with revenues growing a crisp 16%. The stock is slumping due to weak guidance, though the company has a history of conservative guidance leading to big quarterly beats. Roku is cheap at 2x EV/S targets with the potential for upside growth due to new initiatives.