Roku falls in after-hours buying and selling after saying ~26% of whole money is held at SVB

© Reuters. Roku (ROKU) falls in after-hours trading after saying ~26% of total cash is held at SVB

Roku (ROKU) stock fell 3% in after-hours Friday trading after the video-streaming company said that roughly 26% of its cash and cash equivalents were held at SVB Financial Group (SIVB).

As of March 10, Roku had total cash and cash equivalents of approximately $1.9 billion. It added that roughly $487 million is held at SVB while the remaining ~$1.4B is “distributed across multiple large financial institutions.”

“The Company’s deposits with SVB are largely uninsured. At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB,” Roku said in a filing.

“Notwithstanding the closure of SVB, the Company continues to believe that its existing cash and cash equivalents balance and cash flow from operations will be sufficient to meet its working capital, capital expenditures, and material cash requirements from known contractual obligations for the next twelve months and beyond,” it added.

By Senad Karaahmetovic

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