Roku Inc (ROKU) shares plummeted 5.47% in Thursday's trading session, despite the company reporting better-than-expected second-quarter results and raising its full-year outlook. The streaming platform provider's stock decline highlights investors' concerns about future growth and profitability in an increasingly competitive streaming market.

Roku's Q2 2025 performance exceeded Wall Street expectations, with total net revenue reaching $1.111 billion, up 15% year-over-year and surpassing analyst estimates of $1.072 billion. The company's platform revenue, which includes advertising and content distribution, grew by an impressive 18% to $975 million. Roku also surprised analysts by posting a profit of $0.07 per share, compared to the expected loss of $0.15 per share.

Despite these positive results and Roku raising its full-year 2025 platform revenue outlook to $4.075 billion and adjusted EBITDA to $375 million, investors seemed to focus on potential headwinds. The stock's sharp decline may reflect concerns about the sustainability of growth rates, competitive pressures in the streaming industry, or the impact of macroeconomic factors on advertising spending. Additionally, the announcement of a $400 million stock repurchase program and the appointment of Dan Jedda as the new CFO and COO may have contributed to investor uncertainty about the company's long-term strategy and financial management.