) stock soared as much as 14% in early trading on Wednesday after the company revealed a slew of cost-cutting measures including layoffs in an effort to bring down operating expenses.released Wednesday morning, Roku said it would be eliminating 10% of its workforce, or 300 jobs, in addition to slowing down its pace of hiring. This marks Roku's third round of layoffs in less than a year after it cut 200 jobs in March 2023 and another 200 in November 2022.
Analysts weighed in on the surprise guidance raise with JPMorgan reiterating its Overweight rating on the stock. "We believe the revenue increase was in part driven by continued improvement in ad spend across verticals Roku called out as showing greenshoots in the first half of the year , a positive read-thru for the online advertising group," the analyst continued.