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2 Monster Growth Stocks to Buy Now and Hold for the Next Decade

By Trevor Jennewine – Dec 27, 2021 at 6:07PM

Key Points

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The future looks bright for both of these companies.

Myriad factors have contributed to the recent market volatility, including high inflation, the omicron variant, and changes to the Federal Reserve's monetary policy. And while the S&P 500 sits near its all-time high, many growth stocks have fallen sharply in the last few months. For instance, Roku (ROKU -3.53%) and Sea Limited (SE -1.79%) currently trade 51% and 40%, respectively, below their all-time highs.

Of course, those losses sting if you're a current shareholder, but there is a silver lining for long-term investors. You can now buy those high-quality growth stocks at a discount, and both Roku and Sea Limited are well positioned to deliver market-beating returns over the next decade.

Here's why.

Person pointing to a chart on a computer.

Image source: Getty Images.

1. Roku

In 2008, Roku helped pioneer the streaming industry with the release of its first device, and its platform remains the only purpose-built operating system for connected TVs (CTVs). Today, Roku's technology connects over 56 million viewers with content publishers (and advertisers), and it's the most popular streaming platform by a wide margin.

In fact, during the third quarter, Roku powered 31% of CTV viewing time, while the next closest competitor held just 17% market share. To capitalize on that edge, Roku has invested aggressively in its ad business. Last year the company launched the OneView platform, a suite of tools that enable marketers to create, measure, and optimize targeted ad campaigns across CTV, desktop, and mobile devices. And this year Roku debuted original content on its own ad-supported service, The Roku Channel, aiming to boost viewer engagement and create new advertising opportunities.

So far, management's growth strategy is paying off. Streaming hours on The Roku Channel more than doubled in the third quarter, and it ranked as one of the top five channels on the platform in terms of reach. That's impressive, because Roku connects viewers to virtually every ad-supported and premium service that exists. Not surprisingly, the company has delivered an impressive financial performance over the past year.


Q3 2020 (TTM)

Q3 2021 (TTM)



$1.5 billion

$2.5 billion


Free cash flow

($32.0 million)

$266.2 million


Data source: YCharts. TTM = trailing-12-months.

Looking ahead, Roku is primed for future growth. Connected TV currently accounts for a relatively small percentage of total TV ad spend, but as more consumers shift to streaming entertainment, ad budgets will follow. In fact, CTV ad spend will reach $100 billion in 2030, according to BMO Capital. And as the industry leader, Roku is well positioned to capitalize on that opportunity.

2. Sea Limited

Sea Limited is a holding company based in Southeast Asia, one of the fastest-growing economies in the world. Sea owns businesses in three key industries: Shopee is an e-commerce platform, SeaMoney provides digital financial services, and Garena is a video game developer and publisher. More importantly, Sea has established itself as a leader in several verticals.

Specifically, Shopee is the most popular online marketplace in Southeast Asia, receiving more than twice as many monthly visitors as the next-closest competitor. And SeaMoney adds value for merchants and consumers, streamlining the payment process both on and off the Shopee marketplace. Finally, Garena is best known for Free Fire, the highest-grossing mobile game in Southeast Asia and Latin America for the last nine quarters.

Collectively, Sea's impressive lineup of successful businesses has translated into impressive financial numbers over the past year. 


Q3 2020 (TTM)

Q3 2021 (TTM)



$3.6 billion

$8.3 billion


Free cash flow

$87.7 million

$341.9 million


Data source: YCharts. TTM = trailing-12-months.

Looking ahead, Sea Limited has plenty of room to grow its business. Currently only 75% of the population in Southeast Asia has internet access, but that number is growing rapidly. As a result, e-commerce gross merchandise volume is expected to jump more than fivefold over the next nine years, reaching $1 trillion by 2030, according to Bain & Company. And as more consumers spend money online, Shopee and SeaMoney should benefit.

However, Shopee is also expanding aggressively into Europe and Latin America, growing its addressable market outside of its core geographies. If the company gains traction in those regions, I think Sea could achieve a $1 trillion market cap in 10 to 15 years, representing a return of more than 700%. That's why this growth stock looks like a smart buy.

Trevor Jennewine owns Roku and Sea Limited. The Motley Fool owns and recommends Roku and Sea Limited. The Motley Fool has a disclosure policy.

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