Shares of streaming TV platform Roku (NASDAQ: ROKU)
fell 2.1% in the morning session after investors reacted to the company's recent third-quarter results, which raised some concerns about its near-term growth. While the company showed strength in some areas, the outlook for sequential revenue growth was not as strong as hoped. Adding to the concerns, sales of its streaming devices were down slightly compared to the same period in the previous year. These factors seemed to overshadow other positive developments, leading to a drop in the stock price as the market focused on the less favorable parts of the report.
Shares of streaming TV platform Roku (NASDAQ: ROKU)
jumped 7.3% in the afternoon session after investors focused on a strong third-quarter 2025 profit beat and an optimistic financial outlook. The streaming company reported earnings of $0.16 per share, a significant turnaround from a loss of $0.06 in the prior year's quarter and well above analyst estimates of $0.08. While revenue of $1.21 billion met expectations, the company's guidance impressed Wall Street. Roku projected fourth-quarter revenue and full-year adjusted EBITDA that both topped consensus forecasts. This optimistic outlook, along with a positive operating margin and a surge in free cash flow, appeared to outweigh initial concerns over a miss in total hours streamed, which had caused the stock to trade down after the initial announcement.
Roku's Q4 outlook and improving performance have boosted investor optimism for the streaming platform, with JPMorgan maintaining an Overweight rating and raising price forecast to $115.
Streaming TV platform Roku (NASDAQ: ROKU) met Wall Streets revenue expectations in Q3 CY2025, with sales up 14% year on year to $1.21 billion. The company expects next quarter’s revenue to be around $1.35 billion, coming in 2% above analysts’ estimates. Its GAAP profit of $0.16 per share was significantly above analysts’ consensus estimates.
