What Happened?

Shares of streaming TV platform Roku (NASDAQ: ROKU) fell 2.6% in the afternoon session after streaming peer and industry bellwether, Netflix, issued a disappointing revenue forecast and missed its third-quarter profit estimates. The guidance from Netflix, a leader in the streaming space, failed to impress investors despite having a strong lineup of shows. The company’s quarterly profit miss was attributed to unexpected expenses. This news created negative sentiment that spread across the communication services sector, impacting related stocks like Roku. The downturn was part of a broader trend, as technology stocks also faced selling pressure, contributing to the negative market mood.

The shares closed the day at $96.07, down 1.4% from previous close.

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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.

The previous big move we wrote about was 7 days ago when the stock gained 4% on the news that the company announced the launch of its connected TV advertising platform in Brazil and unveiled a series of product updates, including new AI-powered voice features. This move marked the company's latest international expansion, aiming to tap into Brazil's fast-growing streaming audience. The company noted that Brazil was on track to become the world's third-largest market for free ad-supported streaming TV by 2029. Alongside the expansion, Roku rolled out software updates that introduced artificial intelligence to its voice search, allowing users to ask more complex questions about shows and movies. The platform also added new sports features, such as live scores and game reminders. Additionally, Roku released new hardware, including new streaming sticks and a new Roku-powered projector available at Walmart.

Roku is up 28.9% since the beginning of the year, and at $96.03 per share, it is trading close to its 52-week high of $104.84 from October 2025. Investors who bought $1,000 worth of Roku’s shares 5 years ago would now be looking at an investment worth $431.87.

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