By Sam Boughedda
Investing.com -- Shares of Roku Inc (NASDAQ:ROKU) closed significantly lower Friday after the streaming company reported fourth-quarter earnings that saw revenue miss expectations and guidance for the first quarter fall short of expectations.
The company announced earnings per share of 17 cents on revenue of $865.33 million. Analysts polled by Investing.com anticipated EPS of 6 cents on revenue of $896.94 million.
The report resulted in Roku shares closing Friday down 22.34%, adding to Thursday's 10.37% loss before it posted earnings.
Roku sees first-quarter revenue at $720 million. However, this was below the consensus of $748.5 million for the quarter.
The company said its slower growth was due to supply chain disruptions in the television market, which it expects to continue into 2022.
The report prompted Pivotal Research analyst Jeffrey Wlodarczak to downgrade the stock from to sell from hold. Wlodarczak said in a note that "the bottom line is with increasing competition, a potential significantly weakening global economy, a market that is NOT rewarding non-profitable tech names with long pathways to profitability and our new target price we are reducing our rating on ROKU from HOLD to SELL."
In contrast, Needham analyst Laura Martin was bullish in her note following the report, saying the firm is is a buyer “on weakness.”