2 Game-Changing Growth Stocks Set to Soar Over the Next Decade

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Several top-notch investments unfold gradually over time. For instance, Advanced Micro Devices (NASDAQ: AMD) entered the Intel (NASDAQ: INTC) In 1996, the compatible processor market saw various developments, but subsequently, the stock performance generally lagged behind. S&P 500 (SNPINDEX: ^GSPC) Over the subsequent two decades. Following this underwhelming stretch, the chip designer made an impressive comeback with a 5,000% increase over nine years. In comparison, the primary market benchmark only doubled during the same timeframe.

I can share with you comparable tales of rise from humble beginnings concerning an enormous e-commerce company. Amazon or electric car maker Tesla . Apple (NASDAQ: AAPL) Has the biggest market capitalization of any current stock, yet almost collapsed in 1997. This isn’t an isolated case; many prominent figures in the stock market have weathered tough periods. As mentioned earlier, several leading stocks have overcome significant challenges.

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In this regard, some of my preferred growth stocks currently lack market attention. The media-streaming technology creator is among them. Roku (NASDAQ: ROKU) is traded at 84% below the exciting peak prices from 2021, and offers resale of freelance services Fiverr International (NYSE: FVRR) has dropped 92% from its high during the same period.

I’m not discouraged in the least; instead, I continue to invest more in my Fiverr and Roku holdings as their stock prices remain remarkably low. These are two premier companies poised for possibly groundbreaking growth over the next few decades.

From quarantine favorites to forgotten idols

During the quarantine phase of the coronavirus pandemic, both Roku and Fiverr achieved remarkably high valuations. One company provided entertainment options for individuals looking to pass idle hours through streaming services, while the other catered to those who had entrepreneurial aspirations but were short on time. Numerous investors anticipated that these firms would experience decline once people could leave their homes freely again.

Therefore, the stock prices fell together, yet the core businesses continue to flourish.

Roku's global streaming ambitions

Roku experienced consistent yearly growth, maintaining an increase of more than 12% per annum throughout the challenging times of the 2022 inflation crisis. By the close of 2024, they boasted 89.8 million active accounts compared to their count of 60.1 million as the share prices reached their peak towards the end of 2021. This marks a substantial rise of 49% across three years, aligning perfectly with the company’s revenue progression during this timeframe.

The firm is adhering to the Netflix (NASDAQ: NFLX) global growth playbook In numerous aspects, Roku’s previous parent company began as a quintessentially American enterprise before expanding its media streaming operations globally from 2011 to 2016. Roku has introduced its services and hardware for sale in significant markets such as Latin America, France, and the United Kingdom; however, a full international rollout remains pending.

The combination of increasing revenue alongside decreasing share prices has resulted in Roku's stock having a price-to-sales ratio (P/S) of only 2.8. Other entertainment companies such as Apple, Netflix, and Spotify (NYSE: SPOT) The trading values fall between 6.8 to 10.7 times trailing sales. This range could represent a more appropriate market valuation for Roku, considering its revenue growth outpaces all previously mentioned companies. digital media stars .

I am perfectly content purchasing Roku stock at a low price. The stock has great potential to rise over time, considering Roku’s transition into profitability and its ongoing expansion globally.

Fiverr is reshaping the global work landscape (as investors take a break).

Fiverr means business. The firm strives to "transform global collaboration." This is a monumental objective paired with significant aspirations, targeting a primarily brick-and-mortar freelance hiring sector valued at approximately $247 billion annually — solely within the U.S.

Last year, Fiverr reported total revenue of only $391 million, indicating they have yet to make significant inroads into this vast potential market. Despite being profitable and having cleared their long-term debts in 2024, the company’s stock price hasn’t reflected these positive developments, instead heading in the opposite direction. It seems like everything points towards this business becoming a highly sought-after player in the market; however, recent trends suggest otherwise.

I'm not sure how to address that Streetwide error. Fiverr's gig economy business is experiencing growth in all the appropriate areas, yet the stock boasts an impressively low P/S ratio of 2.4. You might also evaluate Fiverr's stock considering its free cash flow (trading at 11.5 times trailing free cash flow) and earnings (8.7 times future earnings projections).

However, as everyone knows, the stock market acts like a popularity contest in the short term and reflects true business worth in the long term. Eventually, market participants will realize this, pushing Fiverr’s stock toward a fairer assessment. Until then, I plan to continue purchasing additional shares of this high-quality growth stock at a significant markdown. While following my strategy isn’t mandatory, failing to contemplate acquiring some Fiverr stocks in 2025 might leave you regretting your decision down the line.

Is it wise to put $1,000 into Roku at this moment?

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John Mackey, who previously served as CEO of Whole Foods Market—an entity now owned by Amazon—is part of The Motley Fool's board of directors. Anders Bylund holds stakes in Amazon, Fiverr International, Intel, Netflix, and Roku. The Motley Fool owns shares of and endorses Advanced Micro Devices, Amazon, Apple, Fiverr International, Intel, Netflix, Roku, Spotify Technology, and Tesla. Additionally, they suggest engaging in short sales for the May 2025 $30 call options on Intel. The Motley Fool holds disclosure policy .

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