Streaming video platform Roku (ROKU) late Thursday smashed Wall Street’s sales and earnings targets for the fourth quarter. However, Roku stock seesawed in extended trading.
The San Jose, Calif.-based company earned 49 cents a share on sales of $649.9 million in the December quarter. Analysts expected Roku to lose 5 cents a share on sales of $617.7 million. In the year-earlier period, Roku lost 13 cents a share on sales of $411.2 million.
Roku has been in growth mode, operating at a loss as it invests in international expansion and its advertising-supported video-on-demand services. Last month, Roku said it ended 2020 with 51.2 million active accounts, up 39% and topping views.
Roku Stock Ranks Third In Industry Group
Roku makes set-top boxes and streaming sticks that allow consumers to access internet video services such as Netflix (NFLX), Walt Disney‘s (DIS) Disney+ and Amazon (AMZN) Prime Video. It also licenses its operating system to TV manufacturers such as TCL and Hisense.
Roku gets most of its revenue from selling advertising on its platform. That includes commercials for ad-supported services such as its own Roku Channel.
On Tuesday, Roku stock notched a record high of 486.72. Roku stock has been on a steep climb since bottoming out at 58.22 in March 2020 during the coronavirus stock market crash. It has an IBD Relative Strength Rating of 96, meaning it has outperformed 96% of stocks over the past 12 months.
Roku stock ranks third in IBD’s Leisure-Movies & Related industry group behind Avid Technology (AVID) and Netflix, according to IBD Stock Checkup. Its IBD Composite Rating is 92 out of 99. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
YOU MAY ALSO LIKE:
Read More: https://www.kbcchannel.tv | For More Business Articles | Visit Our Facebook & Twitter @kbcchanneltv | Making The Invisible, Visible