Roku Shares Plunge. Is This a Red Flag or Time to Buy the Dip?

Roku (NASDAQ: ROKU) shares plunged following the company's Q2 earnings report, despite solid results that surpassed analyst estimates. The stock is now trading at a similar level to where it was in August of 2022, and it has been cut in half over the past five years.While the company does face some tariff headwinds for its devices, its main business is its platform business. Its devices are essentially just a way to get its streaming operating system onto TVs and into households. From there, it generates revenue by getting a cut of the subscription price, or advertising slots for ad-supported services, when people sign up for a service through its platform. In a way, it is similar to the Apple App Store. It also gets ad revenue through its own streaming channel and advertising on its home page.Let's dig into the company's recent results and guidance to see if the dip is a buying opportunity or a red flag.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool