Roku Inc (ROKU) experienced a sharp sell-off in its stock price on October 31, 2024, plummeting by 22.46% despite reporting better-than-expected third-quarter results. The streaming platform provider beat analyst estimates for both revenue and earnings per share in Q3, with revenue rising 16% year-over-year to $1.06 billion, driven by robust growth in its Platform segment.

However, investor sentiment soured as Roku provided guidance for the fourth quarter that disappointed the market. While the company's Q4 revenue forecast of $1.14 billion exceeded the consensus estimate of $1.11 billion, it represented a slower growth rate of 16% year-over-year, compared to the higher growth achieved in previous quarters.

Additionally, Roku's guidance for Q4 gross profit of $465 million and adjusted EBITDA of $30 million fell short of analyst expectations, raising concerns about the company's near-term profitability. The company also announced that it will stop reporting the number of streaming households and average revenue per user (ARPU) from Q1 2025 onwards, which are widely tracked metrics, leading to concerns about transparency.