1. Roku
has been a disappointment to investors since the peak of the pandemic, despite its clear strengths in the streaming industry. As the leading streaming distribution platform in the U.S. and globally, Roku holds a significant position in connecting audiences with streaming services. With over 85 million households using its devices and streaming hours increasing by 20% to 32 billion in the third quarter, Roku’s user base continues to grow. However, the company has struggled to translate its market dominance into profits due to overexpansion during the pandemic. There are positive signs, though, as Roku’s adjusted EBITDA in Q3 more than doubled to $98.2 million compared to a year ago. Additionally, with a narrowed net loss of $9 million, Roku is poised to reach profitability next year. The company is expected to benefit from the recovery of the streaming industry, including potential growth in advertising spending by legacy media companies and the launch of the ESPN streaming service. Enhanced integration with The Trade Desk, an online ad space manager, further strengthens Roku’s position for future growth.
2. Upstart
Another standout performer during the pandemic that faced challenges in 2022 is Upstart (NASDAQ: UPST). As a fintech company specializing in consumer loan origination using AI technology, Upstart struggled post-pandemic due to rising interest rates impacting loan demand and funding partners pulling back. However, as interest rates decline and recession fears ease in 2024, Upstart’s prospects are improving. Revenue in Q3 grew by 20% to $162 million, marking strong growth and a return to positive adjusted EBITDA at $1.4 million. With the potential to regain double-digit profit margins and continued growth ahead, Upstart is positioned to capitalize on the favorable market conditions.
3. Opendoor Technologies
Opendoor Technologies (NASDAQ: OPEN) is a company with a promising business model that could see significant growth next year. Like other stocks, Opendoor faced challenges in the post-pandemic period due to a slowdown in the housing market, impacting its home-flipping and fee collection operations. Despite ongoing losses and workforce reductions, Opendoor’s EBITDA loss improved to $38 million from $49 million the previous year. The anticipated lowering of interest rates by the Federal Reserve is expected to support a housing market recovery, benefiting companies like Opendoor.
Therefore, there is potential for an upturn in Opendoor stock. The positive development is that Opendoor stock has dropped significantly, making a potential doubling in value a realistic possibility. Currently trading at under $2 per share, the stock is down by 95% from its peak.
Should shares rise to $4, it would necessitate only a modest rebound in the housing market and an additional $1.4 billion added to Opendoor’s market capitalization. A further catalyst for an increase in Opendoor stock could be the continuation of declining interest rates, which often lead to lower mortgage rates and subsequently bolster stock prices.
This is an opportunity not to be missed – a second chance at a potentially profitable investment. Have you ever experienced the regret of missing out on investing in highly successful stocks? If so, pay attention to the following.
On select occasions, our team of expert analysts issues a “Double Down” recommendation for companies they believe are on the cusp of significant growth. If you fear you may have missed the boat in terms of investment opportunities, now is the optimum time to consider investing before it becomes too late. The results speak for themselves:
– Nvidia: A $1,000 investment following our “Double Down” recommendation in 2009 would now be worth $338,103!
– Apple: A $1,000 investment based on our “Double Down” advice in 2008 would have grown to $48,005!
– Netflix: A $1,000 investment post our “Double Down” call in 2004 would have ballooned to $495,679!
At present, we are alerting investors to three exceptional companies through our “Double Down” notifications, and such opportunities may not present themselves frequently. Explore these three “Double Down” stocks today.*
*Stock Advisor returns as of December 16, 2024
Jeremy Bowman holds stakes in Roku, The Trade Desk, and Upstart. The Motley Fool maintains and endorses positions in Roku, The Trade Desk, and Upstart, and also recommends Opendoor Technologies.
