Shares of Roku (NASDAQ: ROKU), the digital media player company have fallen by more than 10% in the past five days even as the company delivered better-than-expected Q3 results. The stock has plunged more than 70% year-to-date.
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Currently, the stock is trading just above its 52-week low with a closing price of $49.59 on November 4.
Investors have been disappointed by Roku’s bleak Q4 outlook as the company has projected revenues of $800 million, lower than the consensus estimate of $899 million. Roku also expects that player revenue and platform revenue are likely to be affected by lower consumer spending and advertising budgets during the holiday quarter.
What’s more, the company has projected adjusted EBITDA loss of $135 million in the fourth quarter, far higher than Street estimates of a loss of $48 million.
PayPal Holdings Not Faring Any Better
Shares of PayPal Holdings (NASDAQ: PYPL) have tanked by more than 60% this year and by around 9% even as the fintech company delivered better-than-expected Q3 results.
Similar to Roku, PYPL’s management now expects revenue and adjusted earnings per share for FY22 to be $27.53 billion and between $4.07-$4.09, respectively. Analysts were expecting $27.87 billion in revenue along with an adjusted EPS of $3.93.
PayPal’s lower-than-expected FY22 revenue guidance is due to multiple factors. The company expects holiday e-commerce to grow in “the low single digits” and has factored in the current macroeconomic uncertainty in its outlook. PayPal is also observing weaker spending in the UK, its second-largest market.
