Tech: Roku's shares plunge 12% despite an earnings report its CEO called 'great' (ROKU)

Roku CEO Anthony Wood at the company's IPO in 2017

The streaming media device maker's third-quarter results beat Wall Street's expectations, but its growth rate is slowing.

  • Roku reported third-quarter results Wednesday that topped Wall Street's expectations.
  • But investors sold off its stock following the announcement; in recent trading it was off as much as 12%.
  • The growth rate of the company's platform business, while still robust, slowed markedly in the quarter, and it offered a disappointing forecast for its bottom line in the fourth quarter.

Roku's investors may not have been pleased with the company's third-quarter earnings report, but CEO Anthony Wood insists that everything's going just fine.

The streaming media device maker's results beat Wall Street's expectations on the top and bottom lines. But investors found the results disappointing nonetheless, sending Roku's stock down 12% in after-hours exchanges.

Potentially feeding shareholder worries: Roku projected that its bottom line in the holiday quarter won't be as robust as analysts were hoping, and it revealed that the growth rate of its platform business, which includes its fast-growing advertising sales, slowed considerably in the third quarter.

"We had a great quarter," Wood insisted in an interview with Business Insider. "We're very happy with how things are going."

Source: Pluse ng

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