Roku shares slide lower as the television company enacts its second round of job cuts.
Video Transcript
SEANA SMITH: All right, let's take a look at some of the individual movers of the day. First up, we got to take a look at Roku. That stock closing off just about 3 and 1/2%. Now, the move lower coming after the company announced a second round of layoffs. This time, they're cutting 6% of the workforce. And Dave, when you take a look at the reaction here in the stock price, it could be a bit of a surprise. You would likely think that when a company cuts costs, you would see the stock price rise, except for today. We're looking at losses once again here for Roku.
DAVE BRIGGS: Yeah, quite typically, in the last quarter, we've seen share prices rise after layoffs. Not the case with Roku, and in the words of Tim Nollen, that's because they have so much on their plate. This is a company that has a lot of issues to take care of. And that's why overall, the perception is not one that their only challenge would be containing costs, that they have far more challenge to take on, including televisions, which have not been an overwhelming success. By the way, he sees 28% upside in that stock, price target of $79.
