• Roku is sold for nearly 90% off its all-time high discount four years ago.

• Revenue and participation continue to grow.

• Its price ratio has dropped to a level similar to that of a value stock.

• 10 Better Stocks than Roku ›

When it comes to frustrating stock ownership Year (Name: roku) For many investors, it may be close to the top of the list. The stock has dropped nearly 90% from its all-time high price of $490.76 per share, which hit in mid-2021. Despite its growing user base and leading the way in which consumers transition to streaming TV, the company is still working to regain profitability.

Knowing this, it is not unreasonable to think about what investors should do. Should they throw towels and sell them? Or do shareholders need to give the company more time to turnover that they have been waiting for for a long time?

For all of Roku’s challenges, its business model has great potential for success. It sells equipment with meager margins and even slight losses to attract viewers to its platform.

From there, content providers work with companies to showcase their streaming services on their platforms, and advertisers in turn attract a wide audience. Now, the advertising business generates most of the company's revenue.

Roku's market wins could exacerbate investor frustration. Even larger competitors, e.g. Amazon Samsung has gained some market share in recent months, and Roku has maintained its leadership position. According to Pixalate, nearly 40% of streaming homes in North America use Roku devices.

So, Roku points out that it is the first streaming platform in the United States, Canada and Mexico. It also claims that nearly 40% of TVs sold in the United States use Roku's operating system.

Meanwhile, customers continue to move from traditional TV to streaming options. This market share lead means that Roku is the biggest beneficiary of this secular trend. This is crucial because device revenue leads to platform revenue. In the first quarter, Roku's top line rose 16% year-on-year to $1.02 billion.

Unfortunately, Roku's continued growth has not returned it to the profitability it has gained during the pandemic. Although its net loss of $27 million is well below the $51 million reported in the same period last year, Roku Bulls, who seeks stronger profitability, is still frustrating.

Starting in 2025, Roku has stopped average revenue per user (ARPU), a move unlikely to reassure investors. Although it released free cash flow figures that have been positive for several quarters, the $298 million free cash flow fell 30% year-on-year.