Roku Stock Is Hitting New 52-Week Lows: What's Going On?

Roku Inc ROKU shares are trading around 18% lower Thursday morning after the company reported third-quarter financial results and issued weak guidance.

Roku said third-quarter revenue increased 12% year-over-year to $761.4 million, which beat average analyst estimates of $702.32 million, according to Benzinga Pro. The company reported a quarterly net loss of 88 cents per share. 

Roku said it added 2.3 million active accounts in the third quarter, bringing total active accounts up to 65.4 million. Total streaming hours reached 21.9 billion hours in the third quarter, up 1.1 billion from the previous quarter.

"Advertising spend on our platform continues to grow more slowly than our beginning-of-year forecast due to current weakness in the overall TV ad market and the ad scatter market in particular," the company said in a letter to shareholders.

Related Link: Roku Q3 Earnings: Streaming Platform Posts Revenue Beat, Stock Hammered On Outlook, Weak Advertising Comments

Roku expects fourth-quarter revenue of $800 million versus average analyst estimates of $895.22 million.

• Rosenblatt analyst Barton Crockett downgraded Roku from Buy to Neutral and lowered the price target from $100 to $51.
• Guggenheim analyst Michael Morris downgraded Roku from Buy to Neutral.

ROKU Price Action: Roku is making new 52-week lows on Thursday.

The stock was down 17.9% at $44.60 at time of publication.

Photo: courtesy of Roku.