Roku Inc. shares were creamed 15% in after-hours trading Wednesday after it reported a third-quarter loss almost triple that of a year ago.
Roku reported a September-quarter net loss and revenue that were better than analysts on average expected, according to Refinitiv. The company reported ($0.08) EPS for the quarter, topping analysts' consensus estimates of ($0.22) by $0.14. Analysts polled by FactSet expect a much-narrower loss (4 cents a share) and significantly higher revenue ($386 million) for the December quarter. The disclosure for this sale can be found here.
Several hedge funds and other institutional investors have recently bought and sold shares of ROKU. Four analysts have rated the stock with a sell rating, three have assigned a hold rating, fourteen have issued a buy rating and two have given a strong buy rating to the company's stock. Morgan Stanley lifted its position in shares of Roku by 517.2% in the second quarter. Morgan Stanley now owns 3,966,759 shares of the company's stock worth $359,308,000 after purchasing an additional 3,324,069 shares in the last quarter. Vanguard Group Inc. now owns 6,582,049 shares of the company's stock worth $596,202,000 after purchasing an additional 975,714 shares in the last quarter.
Revenue did jump 50% to $260.9 million, from $173.4 million a year ago. Allianz Asset Management GmbH lifted its position in shares of Roku by 89.5% in the second quarter. The firm has a fifty day moving average price of $122.79 and a 200-day moving average price of $109.88. Catalyst Capital Advisors LLC now owns 322 shares of the company's stock valued at $33,000 after buying an additional 120 shares during the last quarter. BlackRock Inc. boosted its position in Roku by 17.4% in the 2nd quarter. World Asset Management Inc now owns 2,857 shares of the company's stock valued at $291,000 after buying an additional 163 shares during the last quarter.
In a letter to shareholders, Roku said the entry of SVoD services from major media companies such as Disney+ and Apple TV+ "are likely to reinforce consumer interest in moving from traditional pay TV to streaming - and to the Roku platform". Ever since Samsung website has revealed that some of the Samsung smart TVs will not be compatible with running Netflix, there has been an outrage amongst the users.
The number of active user accounts also increased from 30.5 million to 32.3 million.