Sun Aug 03 15:00:00 UTC 2025: **Summary:**

Roku reported Q2 revenue and earnings that beat estimates, with strong growth in platform revenue and streaming hours. Adjusted EBITDA rose significantly, and the company posted a GAAP per-share profit. Despite positive performance and guidance, the stock plummeted 15.5%. Investors are seemingly concerned about Roku’s continued operating losses, its valuation, and projected growth for the remainder of the year. The drop appears to be a correction after significant gains in May and June.
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**News Article:**

**Roku Stock Plummets Despite Strong Q2 Earnings; Investors Unimpressed**

**NEW YORK, NY** – Shares of Roku (NASDAQ: ROKU) took a sharp dive today, falling 15.5% by mid-afternoon, despite the streaming platform reporting solid second-quarter earnings that surpassed expectations. The company’s revenue reached $1.11 billion, a 15% increase year-over-year, beating estimates of $1.07 billion. Platform revenue, driven by advertising and subscriptions, saw an impressive 18% jump to $975.5 million, and streaming hours watched also increased by 17% to 35.4 billion.

Roku showed progress toward profitability, reporting a GAAP per-share profit of $0.07, a significant improvement from the $0.24 loss a year ago. Adjusted EBITDA also surged by 79% to $78.2 million. The company’s guidance for the third quarter, projecting revenue of $1.205 billion, also exceeded consensus estimates. Roku also announced a $400 million share buyback program.

Despite the positive figures, investors remain apprehensive. Concerns appear to be centered on Roku’s ongoing operating losses and the company’s valuation, particularly considering expectations of moderate growth for the rest of the year. The stock’s significant gains in May and June, fueled by a market recovery and a new advertising partnership with Amazon, may have set investor expectations too high.

Analysts suggest today’s pullback is likely a correction following the recent surge, rather than a fundamental shift in the stock’s trajectory. However, uncertainty surrounding profitability continues to weigh on investor sentiment. Meanwhile, Motley Fool, a stock advisor company, claims that Roku wasn’t one of the 10 stocks for investors to buy now.

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