Digital media player manufacturer and video streaming platform Roku (NASDAQ: ROKU) managed to build itself into the world's leading operating system for streaming TV around a popular ad platform that appeals to advertisers, viewers, and content providers alike. The company's growth generally mirrored the state of the digital ad market, which prospered during the pandemic but slowed as potential viewers returned to focusing on offline activities.

Roku's stock also mirrored the market with periods of considerable growth and massive declines since its 2018 initial public offering. At the moment, the entertainment stock is down about 83% from its all-time high in mid-2021. Going forward, there is good reason to believe it has suffered its period of decline and it has what it takes to surge much higher over the next three years.

Admittedly, Roku stock is still recovering from the 2022 bear market. A slump in ad sales turned rapid revenue growth into declines, meaning it had only a short-lived move to profitability. Still, Roku has returned to revenue growth. In the first half of 2023, revenue reached $1.6 billion, a 6% increase compared with the first two quarters of 2022.

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Source Fool.com