Roku Inc. (ROKU) Falls 15% on Profit-Taking, Macro Uncertainty
Shares of Roku Inc. fell by 15.06 percent on Friday to finish at $79.98 apiece amid a combination of profit-taking and broader market pessimism from President Donald Trump's new wave of tariffs on all US imports.
On the same day, Roku Inc. (NASDAQ:ROKU) released the results of its earnings performance for the second quarter of the year, where it swung to a $10.5 million net income from a $33.9 million net loss in the same period last year. Total net revenues increased by 14.8 percent to $1.1 billion from $968 million in the same period last year, driven by the strong performance in video advertising and the successful acquisition of Frndly.
Copyright: adrianhancu / 123RF Stock Photo
In the first half, Roku Inc. (NASDAQ:ROKU) remained at a net loss of $16.9 million, albeit lower by 80 percent versus the $84.8 million in the same period last year. Total revenues grew by 15 percent to $2.13 billion from $1.85 billion year-on-year.
Looking ahead, Roku Inc. (NASDAQ:ROKU) said it expects to book $10 million in net income and $1.205 billion in revenues in the third quarter of the year, and $20 million in net income and $4.65 billion in revenues full year 2025.
While we acknowledge the potential of ROKU as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
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