Roku Stock: A Buy Amid Tough Market Conditions

Summary:

  • Roku’s Q3 earnings were mixed, but the stock rose due to accelerating growth and improving cash flows.
  • The company’s low valuation and improving fundamentals should help the stock move higher in coming quarters.
  • Concerns about Roku’s competitive position, concerns about the ad market and questions on international expansion will probably limit any gains.
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Roku’s (NASDAQ:ROKU) third quarter results were mixed, although the stock moved sharply higher. This was probably due to Roku’s accelerating growth and improving cash flows. While digital advertising and device sales headwinds are abating, Roku’s operating expenses are still elevated, and account growth is


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