Roku (NASDAQ: ROKU) stocks looked to go for a tumble at Thursday’s opening , a day after the maker of digital streaming devices provided a revenue estimate that trailed analysts' estimates.
Roku said sales in the first quarter will be $120 million to $130 million, falling short of the $131.7 million average estimate of analysts.
Roku reported fourth quarter revenue of $188.3 million vs. $182.5 million estimate. Earnings per Share registered six cents (not comparable with estimate of 10-cent loss)
Investors have piled into Roku shares since the company's IPO in September, with the stock more than tripling to $51.10 as of Wednesday's close. While Roku is seeing explosive growth from its platform — the smart TV software and ads business — competition from Amazon, Google and Apple is increasing.
Roku pioneered streaming to the TV. It claims to connect users to the streaming content they love, enable content publishers to build and monetize large audiences, and provide advertisers with unique capabilities to engage consumers.
Roku streaming players and Roku TVTM models are available around the world through direct retail sales and licensing arrangements with TV OEMs and service operators. Earlier this month, Roku and YouTube announced the availability of YouTube TV on select Roku® devices. YouTube TV allows Roku users to stream live sports, local and national news, and must-see shows the moment they air on live TV. Roku is headquartered in Los Gatos, Calif.
Roku shares staggered $11.04, or 21.6%, to $40.06, in early-morning trade Thursday.
