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Roku stock plummets on big earnings miss, gloomy outlook

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Yahoo Finance's Akiko Fujita discusses why Roku stock is down Friday.

Video Transcript

AKIKO FUJITA: One trending ticker we are watching closely today, shares of Roku plunging here, hitting a new low in the session on the back of its latest earnings reports. Shares of the company falling on a weak outlook and a miss on the top and bottom lines. The streaming device group cited challenges posed by slowing ad sales due to the current macro environment.

The company stating in a letter to shareholders, consumers began to moderate discretionary spending, and advertisers significantly curtailed spending in the ad scatter market. Roku also forecasting advertising spend, particularly in that market, will continue to be negatively impacted for the second half of the year. And that stock down 25% right now.