As of now, nobody seems to understand what is driving this sharp sell off. Analysts at Factset projected a loss of 28 cents per share, but ROKU beat that by 6 cents, reporting a loss of $25,155,000.
It could have something to do with the slowed growth seen in their platform revenue and margins, but that is just speculation at this point.
Many of their competitors recently announced that they would be offering free services, so that could also be contributing to this sell off, but we might have to wait for the dust to fully settle before we can truly understand what is going on.
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