Growth stocks are a great tool to build wealth over the long term. It's ideal to look for companies with a long growth runway, as this gives the business plenty of time to expand and for the stock price to reflect that growth.
Here are two top entertainment platforms poised for substantial growth in the years ahead. Let's see why their stocks might make great long-term buys.
Image source: Netflix.
Netflix
Netflix (NFLX 0.87%) stock has had a great run over the past few years. Investors may feel it's too late to profit from the stock, but many people still don't watch Netflix. Netflix estimates its platform still captures less than 10% of total TV viewing time in every major market. If it can just keep expanding its share incrementally, it could significantly increase revenue per member, expand margins, and drive long-term returns for shareholders.
Despite generating $45 billion in annual revenue, management is still guiding for long-term margin expansion -- targeting 31.5% operating margin in 2026 -- suggesting that it can grow earnings per share at double-digit rates. It has several ways to increase revenue per member across premium membership tiers, pricing power, and growth in ad-supported subscription plans, where its ad revenue more than doubled in 2025.
NASDAQ: NFLX
Key Data Points
Netflix is the top streaming service in a competitive market, and it got there with a huge breadth of content. This advantage will help it gain share and drive higher monetization of its member base.
Investors can purchase shares at 27 times 2026 earnings estimates, which looks attractive against analysts' long-term earnings growth expectations of 21% on an annualized basis. That could lead to significant gains over the next decade.
Roku
Roku (ROKU +1.03%) stock has quietly risen 86% over the past three years, beating the S&P 500. Still, the stock could be a rewarding bet on ad spending shifting to streaming platforms, which is still in the early innings.
NASDAQ: ROKU
Key Data Points
The TV ad market is worth about $90 billion, while the connected TV ad market is valued at $30 billion. Meanwhile, households spent 36.5 billion hours on Roku's platform in the third quarter. This shows that ad spending has yet to catch up to where people are spending their time -- a vast opportunity for Roku.
Netflix's strong ad growth last year shows that advertisers are slowly making the transition. Roku's platform revenue increased 17% year over year in the third quarter. This growth reflects Roku's capable ad technology and its appeal to advertisers, particularly in measuring sales conversions and click-through rates.
Investors clearly see Roku in a lucrative position, as the stock continues to trade at high multiples of forward earnings. But it's trading at just 3.4 times sales, suggesting investors are underestimating Roku's ability to deliver significant platform revenue growth over the next decade.
