2 Growth Stocks Down More Than 70% That Could Have Great Rebounds in 2025

Group 1: Roku - Roku's stock has declined 84% from its all-time high, with a current valuation of less than 3 times sales despite improvements in key performance metrics [1][4] - Streaming hours for Roku increased by 23%, 20%, and 20% in Q1, Q2, and Q3 of 2024 respectively, while platform revenue grew by 19%, 11%, and 15% in the same periods [4] - Concerns exist regarding the disparity between increasing streaming hours and stagnant advertising revenue, which may indicate a need for improved ad demand [3][12] - CEO Anthony Wood remains optimistic about growing platform revenue in 2025, suggesting potential for stock recovery if ad demand increases [13] Group 2: Celsius Holdings - Celsius' stock has dropped 71%, with a significant revenue decline of 31% year-over-year in Q3 2024, marking the first quarterly revenue dip since 2018 [1][5] - Despite the revenue drop, management claims the company is gaining market share in the energy drink sector, indicating a potential for recovery in 2025 [6][7] - Celsius' revenue growth has slowed dramatically from previous years, with growth rates of 140%, 108%, and 102% in 2021, 2022, and 2023 respectively, down to only 5% in the first three quarters of 2024 [14] - The stock is currently trading at less than 5 times sales, approximately 50% cheaper than its 10-year average valuation, suggesting a potential buying opportunity [15] - The decline in revenue is partly attributed to PepsiCo's inventory issues, which may have inflated previous growth figures [16] Group 3: Market Sentiment - Investors have generally soured on both Roku and Celsius stocks, influenced by negative market sentiment [17] - Maintaining objectivity in investment decisions is crucial, as emotional reactions to market declines can lead to missed opportunities [2][10]