Roku Stock Plunges on Q4 Revenue Decline and Uncertain Outlook

Roku, Inc. (ROKU) experienced a significant drop in its stock price after reporting a 4% decrease in average revenue per user in the fourth quarter, despite beating revenue estimates and reaching 80 million active user accounts. The company cited challenges in the macro environment and an uneven ad market recovery, leading to bearish commentary and a 15% decline in after-hours trading. However, Roku also reported positive figures such as revenue beating estimates, a net increase of 10 million in active accounts from 2022, and the first-time surpassing 100 billion streaming hours in a calendar year.