Roku stock sinks after reporting tight hardware margins, dramatic fall in streaming viewership
CEO of Roku, Anthony Wood speaks onstage at The Future of TV Streaming & Entertainment during Tribeca X - 2021 Tribeca Festival at Spring Studios on June 18, 2021 in New York City. Roku shares fell more than 8% in after-hours trading Wednesday after reporting second-quarter earnings that beat expectations but showed a slowdown in streaming TV viewing since last quarter and tight hardware margins. But Roku's streaming hours were still up 19% globally year-over-year, the company said. In its shareholder letter, it also said "tight component supply conditions and shipping constraints" continued increasing costs faster than expected. Roku also remarked on the advertising upfronts, where advertisers commit parts of their annual budget to TV advertising.
cnbc.comViacomCBS, Roku shares jump on report that Comcast is considering a deal
NBCUniversal kicks off it's new Peacock streaming service. Comcast chief Brian Roberts is exploring new options for the company's push into streaming, raising the idea of a possible tie-up with ViacomCBS or acquisition of Roku, according to a Wednesday report from The Wall Street Journal. The profile sent shares of Comcast down more than 3%. Roku stock jumped nearly 5%, while ViacomCBS shares were up 3.8%. Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
cnbc.comRoku has lost 40% of its value as competition heats up
Competition from much bigger companies is coming to the streaming market, and investors are bailing out of Roku's stock. Roku stock was up 1% on Monday. The stock has now lost a third of its value since Apple unveiled its streaming service, Apple TV+, would cost only $4.99 a month. Roku's stock is about 40% below its all-time high on September 9. Yet Roku's stock is still up a whopping 250% this year.