Roku shares opened 13% up on Wednesday: here’s why

September 06, 2023 07:37 AM PDT | By Invezz

Roku shares opened 13% up on Wednesday: here’s why — Image source: Invezz

Roku shares up on plans of cutting costs

The streaming-media company expects the said layoff to affect about 10% of its employees. In a filing with the Securities & Exchange Commission on Wednesday, Roku said it will trim its operating expenses via:

Consolidating office space utilisation, strategic review of content portfolio, reducing outside services expenses, workforce reduction and limiting new hires, among other measures.

Roku Inc forecasts this restructuring to result in a $45 million to $65 million charge.

Earlier this year, the Nasdaq-listed firm partnered with Shopify to enable its viewer shop online right from their television sets as Invezz reported here. Roku shares have more than doubled since the start of this year.

Roku lifts its revenue outlook for Q3

On Wednesday, Roku also raised its revenue outlook for the current financial quarter. The California-based company now expects to bring in $835 million to $875 million in Q3.

Its previous guidance was for $815 million. Note that the updated number does not account for impairment charges. According to Matthew Thornton – a Truist analyst:

We view 3Q results as satisfactory and view the additional cost actions as positive.

Still, he continues to rate Roku shares at “hold” only. Among the notable names that are super bullish on this streaming-media company is Cathie Wood. She’s been loading up on the stock on pullbacks this year and now has it as her second-largest holding.

The post Roku shares opened 13% up on Wednesday: here’s why appeared first on Invezz.

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