Roku , Inc. (NASDAQ:ROKU) is a leading TV streaming platform that came to the fore during the initial months of the COVID-19 pandemic. While the company has capitalized on industry tailwinds since last year, a recent slowdown in demand as people return to outdoor entertainment has caused the stock to nosedive in price over the past few months. So, will the stock be able to regain its lost momentum in the coming months as COVID-19 cases rise again? Read more to find out.Roku, Inc. (ROKU) is the #1 TV streaming platform in the United States (based on the number of hours streamed). With operations in the Americas and certain European countries, the ROKU platform provides a cost-effective alternative to traditional cable TV. San Jose, Calif.-based ROKU attracted substantial investor attention last year, given the rising demand for entertainment software amid social distancing norms. This is evident in the stock’s 110% price gains over the past year.
However, because the global economy is gradually reopening, boosted by the strong vaccination drive, ROKU’s viewership declined slightly in its fiscal second quarter (ended June 30). This, coupled with tight component supply conditions and increasing costs, has caused the stock to plummet.
Shares of ROKU have dipped 6.3% in price over the past six months and 14.9% over the past month to close yesterday’s trading session at $338.46.