Roku falls 8% after Wall Street analyst warns of more ad market 'softness'

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Roku stock tumbled on fresh concerns about the ad market recovery.

) slid 8% on Wednesday after a Wall Street analyst warned softness in the ad market will continue to impact the company's earnings through the end of the year.

Cahall said he expects softer fourth-quarter guidance as a result, anticipating that revenue per streaming hour will fall 8% year-over-year in Q4 compared to an estimated 4% annual drop in Q3. Roku shares are down about 17% over the past three months but have soared more than 50% since the start of the year., brand advertising remained pressured as total US advertising came in flat year over year. Spending on traditional TV fell 9.4% while traditional TV ad scatter sank 17.2%.

FILE - This Aug. 13, 2020 file photo shows a logo for Roku on a remote control in Portland, Ore. Roku is cutting about 10% of its employees, or 360 people, as the streaming company looks to lower expenses. Roku Inc. said in a regulatory filing, Wednesday, Sept. 6, 2023, that it anticipates a restructuring charge of $45 million to $65 million related to the job cuts Hold quality growth stocks such as Okta and WSP Global in your TFSA to benefit from outsized gains over time.

 

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