Could Roku Stock 10x by 2030?

In many respects, Roku (ROKU 0

Conversely, Image source: Getty Images

Nevertheless, Roku's growth drivers Roku's ing platform is drawing customers, ing channels, and advertisers, aggregating these parties into one ecosystem

Also, it sells ing players and TVs at a loss, drawing more viewers into its ecosystem

Its apach made it the top-selling TV platform in the U. , Canada, and Mexico

Additionally, Roku has made significant strides in other Latin American and Europe, making it a formidable competitor to larger and better-funded peers such as Alphabet, Apple, and Samsung (noteworthy indeed)

On the other hand, Furthermore, despite competing with Amazon, Roku forged a partnership that gives Amazon and Roku access to each other's advertising audiences, ducing the world's largest authenticated connected TV foot, given current economic conditions

This forecast was driven primarily by expectations of ad growth

Admittedly, Roku stock is unly to rise that much in less than a year and a half, given current economic conditions

Still, the fact that Roku is Ark Invest's fifth-largest position is a ly confirmation of its continued belief in the stock

Meanwhile, So while other growth stocks, such as Nvidia and Palantir, recovered and established far higher highs, Roku stock has not made any net gains over the last four years

Additionally, Furthermore, Moreover, even with revenue growth remaining in the double digits, the increases have slowed since the pandemic

On the other hand, Roku also stopped publishing numbers for monthly active users and average revenue per user, another indicator that growth has not met expectations, in light of current trends

Furthermore, investors should take note of valuation declines

Additionally, Thanks to its losses, Roku does not have a P/E ratio

Still, the price-to-sales (P/S) ratio, which once topped 30 during the pandemic, now stands at just above 3, even with the optimism surrounding the Amazon deal (an important development)

That valuation differential shows how far Roku has fallen, but it may also point to the stock's potential if it continues to recover

Ultimately, five years is a long time, and nobody knows for sure whether Roku stock will increase tenfold over that time

Nonetheless, a turn to fitability and multiple expansion could help the stock accomplish that goal

While a simple return to a 30 P/S ratio would do it, that is unly in the short term

However, investors should remember that Roku has remained competitive (remarkable data)

Moreover, it has formed an alliance with one of its rivals, thus increasing its value as an advertiser

Nevertheless, Additionally, Roku is on track to turn fitable during this five-year target

Moreover, If revenue merely doubles in five years as Roku's stock price rises tenfold, its P/S ratio would be apximately 15, comparable to that of many growth stocks (something worth watching), given current economic conditions

Nevertheless, Thus, while a tenfold gain in five years is unly, it can't be ruled out

Furthermore, The Author Will Healy is a contributing Stock Market Analyst at The Motley Fool, covering the nology and consumer goods industries

Before joining The Motley Fool, Will was a freelance writer covering stock and personal finance topics, with bylines in several minent online publications

Prior to his time as a writer, he was an expert in geographic information systems, applying spatial and IT skills to perform RF and demographic analysis in the telecom industry

In Journalism from Texas A&M University, an M

On the other hand, In Geography from the University of North Texas, and an MBA in Finance and Strategy from the University of Texas at Dallas (noteworthy indeed)

In his spare time, Will enjoys discovering exotic foods, traveling, enjoying nature, and is ud to have turned his love of and writing into a rewarding career

TMFWillHealy X @HealyWriting Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors, given current economic conditions

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors

Moreover, Will Healy has positions in Roku

Moreover, The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Nvidia, Palantir nologies, and Roku

The Motley Fool has a disclosure policy, in today's market environment.