Market volatility comes and goes, but holding a portfolio of well-chosen growth stocks is the easiest way to build wealth. It doesn't matter if you have $50 or $5,000; regularly buying shares of growing businesses in the stock market is one of the smartest moves you can make for your financial future.Here are two stocks than can deliver great returns for investors over the long term. 1. AmazonShares of Amazon (AMZN 0.61%) have doubled since the market bottomed out in 2022, but shares are up only 58% in the ...

Group 1 - Roku announced a major partnership with Amazon in June, indicating potential for increased collaboration in the connected TV market [1] - The connected TV market is experiencing rapid growth, presenting significant opportunities for companies involved [1]

Group 1 - Roku has experienced fluctuations due to tariff volatility but continues to make progress towards profitability and maintains a strong net cash balance sheet [1] - Management shows little concern regarding potential tariff impacts, indicating confidence in their operational strategy [1] Group 2 - The investing group led by Julian focuses on stocks with a high probability of delivering significant alpha compared to the S&P 500, combining growth principles with strict valuation criteria [1] - Julian Lin, as a financial analyst, seeks undervalued companies with long-term growth potential, emphasizing strong balance sheets and management teams [1]

Group 1: Market Overview - Current stock market valuations are considered high, with the S&P 500's price-to-earnings (P/E) ratio at 28, exceeding its 10-year average of 25 [2] - The IPO market is expected to perform above average in 2025, indicating strong market conditions for new listings [1][2] Group 2: Roku's Business Performance - Roku has been selling its hardware devices at a gross loss for eight consecutive quarters, prioritizing market share and advertising technology growth in connected TV [6] - Despite a significant rise in the S&P 500, Roku's stock position is down approximately 15% since 2020 [5] Group 3: Partnerships and Advertising Potential - Roku has established partnerships with major companies like Amazon, Kroger, and Walmart, enhancing its advertising capabilities and data analytics for marketers [8][10] - The partnership with Amazon is expected to improve targeting for advertisers on Roku's platform, leveraging Amazon's extensive consumer data [11] Group 4: Future Outlook - Roku's partnership with Amazon is anticipated to launch before the end of the year, with expectations for improved monetization by 2026 [15] - If Roku fails to show substantial improvement in monetization by 2026, it may indicate a need for investors to reconsider their positions in the stock [15]

Core Insights - Roku announced a partnership with Amazon that allows advertisers access to its ecosystem through Amazon's advertising platform, marking a significant advancement for Roku [1] - The partnership combines the audiences of both companies, reaching 80 million households and over 80% of CTV accounts in the U.S., providing advertisers exclusive access to this large ecosystem [2] Group 1: Partnership Benefits - The partnership addresses challenges in the fragmented CTV landscape, enabling advertisers to reach 40% more unique viewers with the same budget and reducing ad frequency by nearly 30%, resulting in three times more value from ad spend [4][5] - The deal is beneficial for all parties involved, leveraging Roku's leading CTV ecosystem and highlighting the strength of its network effect, which increases as audience numbers grow [6] Group 2: Company Performance - Roku has faced challenges, including stalled average revenue per user (ARPU) and ongoing unprofitability, attributed to expansion efforts in international markets focusing on scale rather than immediate monetization [7][8] - In Q1, Roku reported revenue of $1.03 billion, a 16% year-over-year increase, with a net loss per share of $0.19, an improvement from the previous year's loss of $0.35 per share, indicating growth in top line and progress on the bottom line [9] Group 3: Valuation - Roku's forward price-to-sales ratio is 2.6, which is considered modest in a market with high valuations, making it an attractive investment opportunity for growth stock investors [10]

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Even though momentum is a popular stock char ...

Group 1: RH (Restoration Hardware) - RH has faced macroeconomic challenges, including a weak housing market and tariff uncertainties, leading to a 52% decline in stock price this year [4] - The company's trailing-12-month revenue is $3.3 billion, down from a peak of $3.9 billion, but it reported a 12% year-over-year revenue growth in the latest quarter [5] - RH is expanding into the $200 billion North American hotel industry with RH Guesthouses and offers luxury services, creating a lifestyle ecosystem beyond furniture [6] - The company has historically reported higher margins than average furniture stores, with an adjusted operating margin of 7% in the first quarter, below its 10-year average of 12% [7] - The stock is currently trading at a price-to-sales multiple of 1.16, significantly below its 10-year average of over 2 times sales, presenting a buying opportunity for long-term investors [8] Group 2: Roku - Roku's stock is trading about 32% below its price from five years ago, despite showing double-digit revenue growth [10] - As a leading connected-TV streaming platform, Roku benefits from a growing digital advertising market, which constitutes the majority of its revenue [11] - The platform achieved 35.8 billion total streaming hours in the first quarter, a 16% year-over-year increase, indicating strong user engagement [13] - Roku's recent integration with Amazon Ads allows advertisers to access 80% of U.S. connected TV households, potentially boosting advertising revenue [14] - The stock is priced at a 2.74 price-to-sales multiple, at the low end of its historical range, suggesting potential for future gains as advertising investment increases [16]

Industry Overview - The ad tech industry is experiencing solid growth and has significant upside potential, driven by advancements in connected TV, retail media, better ad targeting, and AI improvements [2] - Major players like Alphabet and Meta Platforms are leading the industry, but there are other companies also benefiting from this growth [2] Company: Roku - Roku's stock price has declined over 80% from its peak in 2021 due to a post-pandemic slowdown in the streaming industry [4] - The company has undergone layoffs and a business reset but is now positioned for growth, with a 16% year-over-year revenue increase to $1.02 billion in the first quarter [6] - Roku's stock price surged after announcing an exclusive integration with Amazon's demand-side platform, indicating potential market share gains [7] - With a market cap of $11 billion, Roku is well-positioned to capitalize on the growth in connected TV, with the potential for significant stock price appreciation [8] Company: The Trade Desk - The Trade Desk is a leading independent demand-side ad tech platform known for its innovative technologies, including its AI platform Kokai and cookieless tracking protocol [9] - The stock is currently trading down 50% from its peak, presenting a buying opportunity, despite a disappointing earnings report in February [10] - In the first quarter, The Trade Desk reported a 25% year-over-year revenue growth to $616 million, demonstrating resilience in various market conditions [11] - The company is well-positioned for continued growth, supported by its cookieless tracking solution and expanding customer ecosystem [12]

Core Insights - Roku has partnered with Amazon Ads to enhance advertiser access to Connected TV audiences, potentially reaching 80 million U.S. CTV households through Amazon DSP [1][2] - Early results from the partnership show a 40% increase in unique viewers and a nearly 30% reduction in ad repetition, indicating improved targeting and measurement capabilities [2] - Roku's shares rose 10.4% following the announcement, reflecting investor optimism about growth opportunities [3] Advertising Strategy - Roku's advertising strategy is gaining momentum with tech-driven upgrades, including an AI-powered Home Screen and partnerships with Adobe and INCRMNTAL [6] - In Q1 2025, Roku's platform revenues grew 17% year-over-year to $881 million, with ad revenues growing even faster [7] - The Roku Channel experienced an 84% year-over-year increase in viewing hours, indicating rising engagement [7] Competitive Landscape - Roku operates in a competitive advertising industry, facing challenges from rivals like Netflix and Paramount Global, which are expanding their ad-supported streaming services [10][11][12] - Netflix's ad-supported tier has seen significant growth, with 94 million subscribers as of May, reflecting strong demand [11] - Paramount Global is expanding its ad-supported tier internationally, indicating a broader strategy to scale its advertising business [12] Devices Segment Challenges - Roku's Devices segment continues to struggle with profitability despite a year-over-year revenue increase of 11% to $140 million in Q1 2025 [13][14] - The segment reported a gross loss of $19 million, highlighting ongoing challenges from macroeconomic pressures and heavy promotional activities [13][14] Valuation and Future Outlook - Roku's price-to-cash flow ratio stands at 38.74X, higher than the industry average of 32.82X, suggesting high growth expectations but an unattractive valuation for value investors [15] - The Zacks Consensus Estimate for Roku's 2025 total revenues is $4.55 billion, indicating a year-over-year growth of 10.54% [9] - While Roku's long-term prospects appear solid, near-term risks and challenges in the Devices segment warrant caution [19][20]

Roku (ROKU) shares rallied 10.4% in the last trading session to close at $82.17. This move can be attributable to notable volume with a higher number of shares being traded than in a typical session. This compares to the stock's 4.3% gain over the past four weeks.The uptick in share price came after the companu announced partnership with Amazon Ads to launch a new integration that could reshape how advertisers reach Connected TV (CTV) audiences. Through Amazon DSP, advertisers can now access an estimated 80 ...