Roku is on the verge of profitability, a challenge that has long weighed on the stock.
All three of Sea Limited’s growth-oriented business segments are in growth mode.
10 stocks we like better than Roku ›
Many growth investors are looking for stocks that can deliver a minimum fivefold return. Finding such stocks typically requires finding the leading stocks in a growth industry and having some patience.
Of course, the market cannot guarantee that such gains will materialize. However, an investor who buys leading stocks in emerging industries and gives them five years stands a significant chance of turning a $1,000 investment into $5,000 within that time frame. These two stocks could achieve such a goal.
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Admittedly, Roku (NASDAQ: ROKU) may look more like a stock that investors should write off than a great growth name to some investors. It reached its record intraday high of $490.76 per share more than four years ago and still trades at more than a 75% discount to that price.
Nonetheless, Roku is the company leading a secular shift from traditional to streaming TV. Its platform brings viewers, content creators, and advertisers together. Moreover, it is the No. 1 streaming platform in the U.S., Canada, and Mexico, even though its size is a fraction of ad giants such as Alphabet and Amazon. Additionally, with efforts to expand in Latin America and Europe, its lead is enough to keep Roku competitive.
Amid such accolades, it appears finally ready to address a nagging doubt that has likely hampered the entertainment stock’s success — its lack of profitability. Roku earned a positive net income in the third quarter of 2025, and unlike the Q2 profit, it included positive operating income. Additionally, the company forecasts full-year profitability by next year.
Also, while the lack of profitability in two of the last four quarters left it without a P/E ratio, its price-to-sales (P/S) ratio is at 3.8, a level slightly above the S&P 500 average of around 3.5. Now that it is operationally profitable…
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