Over the last few years, there has been an increase in demand for streaming services, as consumers shift away from traditional cable TV towards on-demand internet-based content. Roku (ROKU) capitalized on this shift by providing a versatile streaming platform, and the stock soared 125% last year, outperforming the S&P 500's ($SPX) 25% gain. Revenue has consistently increased, thanks to a combination of increased user engagement and advertising revenue.
This year, however, luck has not been on Roku's side. While its fourth-quarter results were positive, management's soft outlook for the first quarter and investor concerns over Walmart's (WMT) acquisition of rival Vizio have dragged down its stock by 29.5% year to date.
