Weak advertising and rising interest rates affected Roku

Roku Inc. was unaffected by optimism regarding Netflix Inc.’s ad-supported subscriber counts, which recently helped the video streaming company’s shares rise from multi-year lows.

The streaming service platform’s shares ended the trading day on Friday at their lowest level since February 2019, and since the year 2022 began, they have lost more than three-quarters of their value, representing the 12th-largest decline in the Russell 1000 index.

Roku suffers significant losses as a result of the economic slowdown.

Users of Roku devices can control streaming services like Netflix and Hulu. The company shares some of its ad inventory with other services and sells advertisements for its own Roku channel.

“There’s a theory that Roku might remain out of it while Netflix’s ad revenue increases, but I don’t think it will have much of an effect on them. According to Jim Warden, a chief investment officer of Wealth Consulting Group, which owns Netflix and Walt Disney Co., Roku is in significant difficulties, making its stock unattractive.

Roku still maintains Cathy Wood, whose Ark Investment Management is the second-largest shareholder in the company behind Vanguard, as a major supporter.

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