Roku’s Stock (NASDAQ:ROKU)
On Thursday morning, Roku stock was down 7.2%. Negative economic news overshadowed the positive announcements of the company’s new smart-home devices with Walmart and the debut of The Roku Channel in Mexico.
More than forecast and far beyond the Federal Reserve’s 2% objective, the Consumer Price Index climbed 0.4% in September and 8.2% year over year. Traders’ hopes for a slowing in inflation and, by extension, a halt in the rise of interest rates were dashed by the news.
Roku’s stock price is down 78% this year due to the slump in the advertising industry. But the announcement of Walmart’s expansion into Mexico might be monumental, setting the stage for future success for Roku (NASDAQ:ROKU).
What’s the Reason?
Advertising firms are becoming cautious with spending due to the volatility of the economy. In the second quarter, Roku’s (NASDAQ:ROKU) year-over-year revenue growth slowed to 18% from 28% in the first quarter.
Sales of Roku streaming devices, such as Roku TV sticks and Roku-powered TVs, have been hit hard by inflation and supply chain concerns. Although stores have lately reduced TV prices to clear out unsold stock, TV sales have been dismal in 2018. This has made it more challenging for Roku to expand the user base of its TV operating system, which is how the company makes money off of its customers via advertisements and in-app purchases of content.
What’s Next?
The good things that have happened to Roku (NASDAQ:ROKU) recently have been overshadowed by the negative news that has surfaced today. On Wednesday, Roku unveiled a new line of smart home gadgets, including a video doorbell and security cameras sold exclusively at Walmart’s 3,500+ locations.
Roku’s continued growth in other countries is a promising business strategy. Roku’s Stock has recently announced the availability of its commercial-supported channel in Mexico. Thus, Roku’s Stock will be well-positioned for expansion whenever the advertising industry recovers.
Featured Image- Megapixl @ Michaelvi
Author Shariq Khan 
