2 Growth Stocks Setting Up for a Bull Run in 2025

Group 1: Roku - Roku's stock price has significantly declined over the past three years, yet the company continues to grow its household user base at double-digit rates [2][3] - The number of streaming households increased by 13% year over year, surpassing 85 million in Q3, driven by consumers shifting from legacy TV to digital media [3] - Total streaming hours rose by 20%, reaching 32 billion, indicating high user engagement which attracts advertisers [4] - Roku's platform revenue, including advertising and premium subscriptions, grew 15% year over year to $908 million [4] - The gross profit margin improved from 48.1% in Q3 2023 to 54.2% in Q3 2024, with management focusing on further margin enhancement through new features and partnerships [5][6] Group 2: DraftKings - The online sports betting market is projected to reach $24 billion by 2029, positioning DraftKings to benefit from this megatrend [7] - DraftKings' revenue grew 39% year over year to nearly $1.1 billion in Q3, with expectations of a 31% increase in 2025 [8] - The stock is currently trading at just over 4 times trailing-12-month revenue, offering better value compared to more than 5.6 times sales last year [8] - Management anticipates free cash flow to reach approximately $850 million in 2025, indicating potential for higher long-term margins [9] - Sports betting is legal in 38 states, with Texas and California yet to legalize it, presenting future growth opportunities for DraftKings [10]