Roku (NASDAQ: ROKU) reported earnings results that were better than Wall Street analysts expected, but investors still sold off shares of the growth stock after digesting its letter to shareholders. Although all of the core metrics at Roku -- revenue, accounts, hours streamed -- saw strong results, management reiterated its uncertainty regarding the overall TV ad market.
"We believe that total TV ad spend will not recover to pre-COVID-19 levels until well into 2021," management wrote in its release. "We remain confident in our ability to grow our ad business, albeit not as much as we would have expected prior to the pandemic."
Those comments have some investors worried. At the start of the year, management said it expected to grow revenue about 42% in 2020. Investors have lowered their expectations since then, but Roku still managed to grow its top line 42% year over year in the second quarter.