Affordable Picks for Long-Term Investment: Top 3 Stocks Worth Considering for 2025 and Beyond (If You Have $3,000)
In the ever-evolving world of technology, two companies – Roku and The Trade Desk – are making waves in the streaming industry.
Recently, concerns over "walled gardens," such as Alphabet's Google and Meta Platforms, have alarmed investors. However, Roku, the No. 1 TV OS platform in the U.S., Canada, and Mexico, and a growing presence in Mexico, stands out as a beacon of transparency. Roku's price-to-sales (P/S) ratio, just above 3, affirms its inexpensive stock status, making it an attractive option for investors.
Roku's financial health is also on the upswing. The company reported earnings of almost $11 million in Q2, indicating it is on track to meet its goal to turn operationally profitable by next year. Moreover, streaming hours on Roku have risen by 17% over the last year, underscoring its growing popularity.
Meanwhile, The Trade Desk, a company not tied to any single platform, is carving out its niche. Unlike "walled gardens," The Trade Desk is not an advertiser and holds no bias towards one platform. This neutrality is a significant advantage for advertisers and ad agencies, who can leverage The Trade Desk's critical tool to place ads on platforms with high returns.
The Trade Desk is also making strides in its operations. The company is transitioning customers from Solimar to the AI-driven Kokai platform, a move that is likely to improve benefits for its users.
However, The Trade Desk's stock (TTD) has seen sell-offs after two of its last three earnings reports. Despite this, The Trade Desk's forward P/E ratio of 31 is far below the 53 average since the beginning of 2023, suggesting that the market may be undervaluing the company.
In conclusion, both Roku and The Trade Desk are making strides in the streaming industry, offering unique solutions and attractive prospects for investors. While challenges persist, these companies demonstrate resilience and innovation in a rapidly evolving market.
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