If you're sitting on a sweet $2,500 of investable cash and looking to give your portfolio a much-needed jolt of excitement, we've got just the ticket. Feast your eyes on two dazzling stocks that could turn your investment into a long-term love affair: media-streaming technology expert Roku (ROKU 5.41%) and e-commerce platforms provider Shopify (SHOP 4.90%).
Shopify's army of e-commerce enthusiasts
Shopify has amassed an extraordinary following of online merchants. Let's explore the driving force behind this e-commerce giant's success and what it means for investors with an eye on the long game.
The horde of 1.7 million (and counting) merchants are the lifeblood of Shopify's business. These devoted clients span the spectrum from small-scale entrepreneurs to global brands, creating a diverse and ever-growing ecosystem fueling Shopify's growth.
The e-commerce market is expanding frantically. Global retail e-commerce sales are expected to reach a mind-blowing $7 trillion by 2025. As the world continues its blooming love affair with online shopping, Shopify's merchant army only grows larger. The list of Shopify-powered stores grows longer in tandem with the change in shopping habits.
Shopify isn't just about providing merchants with a digital storefront; it's also committed to offering a suite of services and tools designed to help sellers succeed. From payment processing and inventory management to marketing solutions and shipping services, Shopify's ever-evolving platform is a magnet for merchants looking to thrive in the cutthroat world of e-commerce.
The company's strategic partnerships with online giants like Facebook, Google, and other major players have been instrumental in its success. By forging alliances with these tech titans, Shopify is creating a seamless, integrated experience for its merchants, and making its tools available to untold millions of prospective shoppers. This way, Shopify's payment services accelerate their economies of scale and make the platform even more attractive to online sellers.
And with more sellers on board, more consumers will stumble on the Shopify name in their next online shopping experience. The loop is closed and the virtuous circle spins on.
With a rapidly growing merchant base, a booming e-commerce market, global expansion plans, a comprehensive platform, and strategic partnerships, Shopify's future is looking nothing short of spectacular. As more and more merchants flock to the platform, it's clear that this e-commerce juggernaut has the potential to become an even bigger force to be reckoned with. For investors with a keen eye on the long-term prize, Shopify's merchant-driven success is a tantalizing prospect that's hard to ignore.
Roku, the cord-cutting king
Next on our list is Roku, the streaming stalwart that has been dominating the digital airwaves like a modern-day media maestro.
With 70 million active accounts across the globe, Roku has firmly cemented its position at the top of the streaming food chain. And as for market share? Roku commands about 40% of the domestic market for both smart TVs and streaming devices.
The global streaming market is like a runaway train -- there's no stopping it, and Roku is the conductor at the helm of this entertainment revolution. The metaphor may be uncomfortable but it's still true. The streaming train is never going back to the cable-and-broadcast station again.
The current global streaming market is nothing short of explosive, with its value estimated at a cool $135 billion in 2021. But hold onto your hats, because this figure is set to soar to a staggering $243 billion by 2028 and much more in the years and decades beyond. With a growing appetite for streaming content, Roku's target market is expanding at breakneck speed, and it's perfectly positioned to cash in on this digital gold rush.
While Roku's success in the U.S. market is undeniable, a whole world of opportunity is waiting just beyond the horizon. International expansion is high on Roku's priority list, and it's already making inroads in markets like Europe, Canada, and Latin America. As the streaming trend sweeps across the globe, Roku's potential market size will continue to grow exponentially.
If there's one trend that's shaking up the traditional TV landscape, it's cord-cutting. Millions of households are ditching their cable subscriptions yearly, meeting all their video entertainment needs with streaming services instead. Roku benefits from this sea change in a big way. As the number of cord-cutters rises, Roku's target market will expand in tandem, making it a tempting prospect for investors looking for long-term growth.
The company was once known for its handy and unique little set-top boxes and streaming sticks. The products still exist, but Roku has moved past its hardware addiction to focus on more profitable operations such as software licenses and cloud-based services.
Nowadays, Roku taps into the lucrative ad-supported streaming market with its very own platform, The Roku Channel. A growing number of viewers looking for free, ad-supported content, this segment of the streaming market is experiencing a meteoric rise. (Again with the unfortunate metaphors, dude? Meteors don't soar -- they plummet!)
Roku's expanding ad business opens up yet another avenue of growth, further increasing its long-term target market size. Yes, digital ad sales have stalled in recent quarters, as a side effect of the inflation crisis. But that's a temporary issue that doesn't change the long-term value of Roku's evolving ads strategy.
Roku's long-term target market size is a thrilling prospect for any investor with an eye on the streaming sector. With a rapidly growing global market, international expansion opportunities, the cord-cutting phenomenon, and a burgeoning ad-supported streaming segment, Roku is poised to reap the rewards of a booming industry.
The streaming tsunami gathers momentum, and the size of Roku's target market will continue to swell. Surely, you want to take advantage of this seemingly unstoppable consumer trend.
Roku and Shopify: a terrific twosome to care for your cash
So there you have it -- two stellar stocks poised to propel your portfolio to previously preposterous pinnacles.
And these stocks may not look cheap in traditional terms, but they are an absolute steal compared to the lofty prices they reached in the boom times of 2021. Shopify's shares are trading 74% below their all-time highs right now and Roku's retreat is an even steeper 88% discount.
Those price cuts are just a nice bonus, though. Sure, it doesn't hurt to start with a lower price tag but the real story is that Roku and Shopify are set up to deliver shareholder-friendly business results for many years to come. Whether you plonk down $2,500 in your favorite idea or divide the cash between the two, you'll be well on your way to making some serious cash in the long run.
