What Happened?

Shares of streaming TV platform Roku (NASDAQ: ROKU) fell 2.1% in the morning session after investors reacted to the company's recent third-quarter results, which raised some concerns about its near-term growth. While the company showed strength in some areas, the outlook for sequential revenue growth was not as strong as hoped. Adding to the concerns, sales of its streaming devices were down slightly compared to the same period in the previous year. These factors seemed to overshadow other positive developments, leading to a drop in the stock price as the market focused on the less favorable parts of the report.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Roku? Access our full analysis report here.

What Is The Market Telling Us

Roku’s shares are very volatile and have had 29 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Roku is up 42.9% since the beginning of the year, and at $106.44 per share, it is trading close to its 52-week high of $108.63 from November 2025. Investors who bought $1,000 worth of Roku’s shares 5 years ago would now be looking at an investment worth $493.51.

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