2024-05-06 07:19:00 ET
Roku (NASDAQ: ROKU) had a very difficult stretch operationally that started in the second quarter of 2022 due to a weak advertising market. Over the next year, the company consistently reported negative adjusted earnings before interest, taxes, depreciation, and amortization ( EBITDA ) until it broke the streak in the third quarter of 2023.
Since then, Roku has been back on track, reporting positive adjusted EBITDA and generating positive free cash flow . Its recently reported first-quarter results continued this trend, showing that the worst is behind the company.
However, Roku's overall metrics still have been quite mixed, and the stock is still down about 45% from its 52-week high. That begs the question: While the worst is behind Roku, does that make the stock a buy? Let's take a look at the good and the bad.
For further details see:
The Worst Is Behind It, but Is Roku Stock a Buy?