10 Stocks Set to Explode in 2025

8. Roku, Inc. (NASDAQ:ROKU)

Street High Upside as of October 27, 2024: 54%

Number of Hedge Fund Holders: 35

Roku, Inc. (NASDAQ:ROKU) is a streaming television company that ranks eighth on our list of stocks set to explode in 2025. The streaming platform connects the entire TV ecosystem around the world and is available in North America, Latin America, and parts of Europe. The company also sells TVs and owns a channel, Roku Channel, that provides consumers with free, ad-supported content.

The Roku Home Screen, the first step to its streaming experience, reaches more than 120 million people every day in the United States. In the second quarter of 2024, the company logged $969 million in revenue, up by 14% year-over-year. Of this, platform revenue was worth $824 million, up by 11% year-over-year. Streaming households totaled 83.6 million, a net increase of 2 million from Q1 2024.

Roku’s (NASDAQ:ROKU) expansion story is interesting. On October 9, the company forged a partnership with Instacart to advance its advertising partnership. The partnership promises superior targeting and offers new shoppable formats. The new ad formats are interactive allowing the grocery shopping platform to pitch personalized adverts to customers sitting at home watching television.

Roku, Inc. (NASDAQ:ROKU) is set to explode in 2025 and we say that because of its consistent growth in users and streaming households. In Q2 2024, the company achieved its fourth consecutive quarter of positive adjusted EBITDA and cash flow, reflecting its growth trajectory.

O’keefe Stevens Advisory stated the following regarding Roku, Inc. (NASDAQ:ROKU) in its first quarter 2024 investor letter:

“Roku, Inc. (NASDAQ:ROKU) – An idea that would have seemed unthinkable just a few years back when low P/E or low multiple meant the stock was cheap. Roku is free-cash-flow positive, EBITDA breakeven, and GAAP Net Income unprofitable. Historically, investors tend to shy away from unprofitable businesses. Deeming them too risky. Roku has a $2B net cash position and is reinvesting in the business, grabbing Connected TV market share. Geographic expansion takes time and capital. They have a dominant share and have many tailwinds. Walmart’s acquisition of Vizio adds to the already heightened uncertainty. We can’t remember seeing a company with such “negative” sell-side coverage. 9 buys, 10 holds, and 4 sells. Nearly all reports discuss weighting for clarity, which is why the opportunity exists. Wells Fargo has the lowest price target at $45, or 26% downside. We see a reasonable case for a $100 stock in the near term and long term, owning a compounder with an attractive business model, secular tailwinds, and dominant market share that can translate into a desirable return over the next several years.”