Prediction: Roku Will Soar Over the Next 2 Years. Here's 1 Reason Why.

Motley Fool
2024-12-22
  • Roku's digital advertising business is poised for a strong recovery as inflation concerns fade away.
  • The streaming media expert's stock looks undervalued.
  • International expansion plans and potential buyout rumors add extra upside to the advertising recovery story at Roku's core.

I have a long list of reasons to buy Roku (ROKU 2.75%) stock.

The media-streaming innovator's international market expansion is in a very early stage. The company is growing sales, users, and cash profits at a remarkable pace. Rumor has it that Roku could be a buyout target in 2025. And the stock is staying down despite these pending catalysts, making it an incredible value.

Roku's secret sauce

I could talk your ear off about any of these potentially stock-boosting catalysts and then some. But I haven't even mentioned the biggest reason to buy Roku stock yet.

You see, the low stock price largely rests on soft ad sales on Roku's media-streaming software platform. The weakness is part of a sector-wide downturn in the digital advertising sector, and this distressed industry is on the verge of a huge upswing.

You don't want to be left empty-handed when this sea change plays out. It may not happen in 2025, but time is running out.

Three steps from plunge to rebound

The path from Roku's ad-based downturn to a roaring comeback is very simple:

  • The inflation crisis put a damper on targeted ad sales in 2022. Why spend big money on effective advertising when no one is ready to buy what you're promoting?
  • Roku's stock plunged despite strong user growth and a dominant market position. The adtech market's slump gave Roku bears plenty of tools to hold the stock down -- despite consistently strong earnings reports.
  • A post-inflation economy should see more consumer spending and give advertisers access to big budgets again. Roku's large user base and effective ad-spot platform will benefit greatly from this ongoing market refresh.

This is a firm prediction, not a blind guess. Many companies in the online advertising industry are already reporting great revenue growth, signaling a strong recovery. Most of them are not as undervalued as Roku, though. That's why I recommend Roku's stock over other digital ad specialists.

Roku will soar in the next two years. You can quote me on that.

免责声明:投资有风险,本文并非投资建议,以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请,作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考,不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证,投资者应自行研究并在投资前寻求专业建议。

热议股票

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10