2 Stocks With Monster Upside Over the Next 10 Years

Core Viewpoint - The digital entertainment sector, particularly Netflix and Roku, presents substantial growth opportunities for long-term investors as both companies are positioned to capitalize on increasing market share and ad spending shifts. Group 1: Netflix - Netflix's platform captures less than 10% of total TV viewing time in major markets, indicating significant room for growth and potential revenue increases per member [2] - The company generated $45 billion in annual revenue and is targeting a 31.5% operating margin by 2026, suggesting the potential for double-digit earnings per share growth [3] - Shares are currently priced at 27 times 2026 earnings estimates, which is attractive given analysts' long-term earnings growth expectations of 21% annually, indicating potential for significant gains [6] Group 2: Roku - Roku's stock has risen 86% over the past three years, outperforming the S&P 500, and is well-positioned to benefit from the shift in ad spending to streaming platforms [7] - The TV ad market is valued at approximately $90 billion, while the connected TV ad market is worth $30 billion, highlighting a significant opportunity for Roku as ad spending has not yet aligned with user engagement [9] - Roku's platform revenue increased by 17% year over year in the third quarter, reflecting its effective ad technology and appeal to advertisers [10]