Growth is a hallmark of all great companies, but the laws of gravity eventually take hold.
Those who rode the COVID boom and ensuing tech selloff in 2022 will surely remember that the market’s punishment can be swift and severe when trajectories fall.
Streaming TV platform Roku (NASDAQ: ROKU) announced better-than-expected revenue in Q1 CY2025, with sales up 15.8% year on year to $1.02 billion. The company expects next quarter’s revenue to be around $1.07 billion, close to analysts’ estimates. Its non-GAAP loss of $0.19 per share was 24.8% above analysts’ consensus estimates.
Companies with more cash than debt can be financially resilient, but that doesn’t mean they’re all strong investments.
Some lack leverage because they struggle to grow or generate consistent profits, making them unattractive borrowers.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
Shares of streaming TV platform Roku (NASDAQ: ROKU)
fell 11.2% in the morning session after the company reported weak first quarter 2025 results: its revenue outlook for next quarter missed significantly, and it pulled its full-year guidance for advertising revenue, raising concerns about visibility into a core part of its business. On the other hand, Roku blew past analysts' EPS expectations this quarter. Still, this was a softer quarter.
Roku Inc (NASDAQ: ROKU) shares tank in early trading despite upbeat Q1 results. Analysts maintain mixed ratings, citing cautious guidance and tariff risks.
Legendary investors Warren Buffett and Cathie Wood have vastly different strategies - steady compounders vs volatile visionaries. Who would you rather be?
The company said it remains confident in its strategy and continues to see a path to achieving positive operating income in 2026, despite the uncertainties.
