Now the question is exactly why is Roku borrowing the money. There are a few possibilities including the fact that Roku may want the money to help with a project it’s working on. It is not unusual for companies to borrow money just as they are trying to place a large order for new products they hope to soon release.
It is also possible Roku is trying to get its hands on more players from its current lineup. With millions of Americans buying up streaming players as they prepare to be stuck at home, Roku and others have reportedly seen sales surge. Its possible Roku is hoping to bolster its supply lines as the market changes. Amazon has recently pushed the delivery of Roku players back a full month as part of its efforts to focus on essential products only. This could have put a strain on Roku’s other supply chains.
Roku could also be having trouble with its ad business as a majority of its revenue now comes from things like ads and subscriptions. Facebook, who also relies on ads is, according to CNBC, facing a slowing ad market as some advertisers pull back on spending. This could also be impacting Roku as the overall ad market could be suffering similar to Facebook.
Whatever Roku wants the money for, Roku is clearly working hard to find ways to keep growing as Covid-19 impacts almost every business out there.
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