Media center supplier Roku (ROKU) initially fell to around $90 after posting quarterly results. Shares spiked after the firm posted third-quarter results.
Roku reported net income of $28.8 million on revenue of $1.21 billion (+14.2% Y/Y). Users streamed 36.5 billion hours in Q3 (+15% Y/Y). In Q4, Roku expects revenue of $1.35 billion. The initial drop in ROKU stock is unusual, despite the strong quarterly beat. This is a pattern that repeated from previous quarters.
After Warner Bros Discovery (WBD) and other firms hiked prices, brace for customers to cancel their subscriptions. That is a risk for Roku.
Roblox (RBLX) fell after it posted Q3 revenue of $1.4 billion (+23.9% Y/Y). Bookings jumped by 70% Y/Y to $1.9 billion, while its daily average users grew by 70% Y/Y to 151.5 million. RBLX stock fell from $120 to close last week at $113.72. The Q3 net loss was $257 million.
Reddit (RDDT) might trade higher after posting Q3 earnings of $0.80 a share. Revenue of $585 million grew by 67.9% Y/Y. The internet lacks forums for end-users to ask questions and get answers from community members.
Bears hold a 14.19% short interest against RDDT stock. A short squeeze is possible if Reddit posts another strong quarterly result.
Stocks in the social media sector include Pinterest (PINS), Meta Platforms (META), and Snap (SNAP).
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