Yahoo Finance Live look at how Roku shares respond to the tech developer's second-quarter earnings miss.

Video Transcript

SEANA SMITH: --Roku. We're just getting earnings results from the company. A miss here, and we're seeing that reflected in shares with shares sinking. Look at that, 22%. Revenue coming up short, 764.4 million. The estimate was for 804 million. They see third quarter revenue of just around 700 million, far short of what the Street was looking for, which was just over 903 million. Loss per share of $0.82. The estimate was for a loss per share of $0.72.

Dave, there was some hesitation going into this quarterly earnings report from some of the analysts that have been closely watching Roku. Wolfe Research saying that they're facing two big challenges here-- scale and monetization. And it looks like we're certainly seeing that reflected in this earnings report.

DAVE BRIGGS: Do you remember about two weeks ago when we heard an analyst come out and say there's a potential for a streaming recession? And now we're kind of seeing that play out. We saw it with Netflix, their first ever back-to-back loss of subscribers. We saw it this morning with Peacock. Subscribers were flat, and losses widened to more than 400 million, and now the third of three. Roku showing similar weakness in that industry. And look, there have been questions about Roku. Will Disney go ahead and complete their acquisition entirely of Roku?

But the entire sector, Rachelle, looks like we are seeing-- now, again, it's clearly not a sub story anymore. I think we've moved on from that after that initial loss from Netflix. But the entire sector looks like it's suffering some weakness, recessionary fears included.

RACHELLE AKUFFO: And obviously, Roku more so tied to televisions, whereas you have the actual streaming services like Apple and Amazon, much bigger budgets, much more focused on content. And also keeping in mind, obviously, Roku a big part of Cathie Wood's Ark Innovation ETF, that also falling in after hours, down about 1 and 1/3 of a percent. We'll see if she buys the dip. She has before bought the dip. But I don't know if this is one she's going to want to hang on to. As we see there, the stock price now down about almost 24% there in after hours trading for Roku.

SEANA SMITH: Yes, certainly not a strong reaction here from these numbers. Worries about the third quarter revenue estimate of 700 million. The estimate was for 903 million. And also the numbers from the second quarter not meeting expectations.