Why Roku, Inc. (ROKU) Went Down On Friday

We recently published a list of 10 Firms Battered by Poor Earnings, Dismal Outlook. In this article, we are going to take a look at where Roku, Inc. (NASDAQ:ROKU) stands against other Friday’s worst performers.

Wall Street’s major indices ended the trading week on a strong note, clocking in robust gains as investors cheered better-than-expected non-farm payrolls last month while digesting more corporate earnings results.

The tech-heavy Nasdaq led the rally among all major indices, finishing up 1.51 percent. The S&P 500 clocked in a 1.47-percent gain, while the Dow Jones grew by 1.39 percent.

Despite the broader market optimism, 10 companies managed to register declines amid dismal earnings performance in the first quarter of the year. In this article, let us explore Friday’s 10 worst performers and the reasons behind their decline.

To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume.

A large movie theatre filled with people enjoying a film streaming on a smart TV.

Roku, Inc. (NASDAQ:ROKU)

Roku Inc. dropped its share prices by 8.5 percent on Friday to close at $61.55 apiece as investors shunned the company’s strong earnings performance for the first quarter of the year.

In its latest earnings release, Roku, Inc. (NASDAQ:ROKU) said that net loss narrowed by 46 percent to $27.4 million from $50.8 million in the same period a year earlier. Net revenues increased by 15.77 percent to $1.02 billion from $881 million year-on-year.

Looking ahead, the company expects net loss to further shrink to $25 million in the second quarter and end at $30 million in full-year 2025.

Net revenues are expected to settle at $1.07 billion in the current quarter and at $4.55 billion for the full-year period.

“We remain vigilant and adaptable as market conditions evolve. While uncertainty remains, we are confident in our strategy and continue to see a path to achieving positive operating income in 2026,” said Roku, Inc. (NASDAQ:ROKU).

Overall, ROKU ranks 8th on our list of Friday’s worst performers. While we acknowledge the potential of ROKU as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ROKU but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. This article is originally published at Insider Monkey.