Investing in the stock market doesn’t require a large sum of money. Even if you have a modest amount to spare, consistent investments can yield significant returns over time. For instance, consider the example of Amazon stock. If you had invested $100 in Amazon a decade ago, you would now have nearly $1,000 from that single investment.
With just $100, you can purchase approximately one share each of Roku (ROKU 1.52%) and Global-e Online (GLBE 1.64%), both of which have the potential to become multi-baggers in the coming years.
Roku: The Unique Streaming Model
Roku gained immense popularity during the early days of the pandemic but faced a subsequent decline. However, it is now focused on rebuilding its market position.
Like many companies that experienced a surge in demand during the stay-at-home period, Roku is now challenged with maintaining high sales in a competitive streaming market. However, these challenges do not imply inherent flaws in the business.
Roku stands out with its unique dual model of hardware and free streaming, setting it apart from competitors. While the hardware segment experienced reduced sales for a few quarters, it rebounded in the first quarter of 2023.
The advertising-dependent segment faced its first sales decline but other metrics, such as increased active accounts and viewing hours, indicate a healthy business. Profitability has been on a downward trend but Roku’s history suggests it will return to profitability. Despite a 28% decline in stock value, Roku shares currently trade at 2.8 times trailing 12-month sales, and investors have driven the stock up by 55% in 2023.
Overall, Roku presents an enticing long-term investment opportunity.
Global-e: The Niche E-commerce Superstar
Global-e operates as a business-to-business e-commerce platform, providing cross-border solutions. In Q1 2023, the company’s revenue surged by 55% YoY, reaching $117.6 million.
Despite the challenging environment, Global-e achieved strong double-digit sales growth as businesses sought to boost sales in a sluggish economy. Expanding into additional markets could strengthen its position further.
Although Global-e hasn’t achieved profitability, several factors indicate that this could change soon. A significant portion of its expenses is tied to its relationship with Shopify through warrants set to expire in 2025.
As Global-e scales its operations, improvements are evident. Its Q1 gross margin outperformed the previous year, and adjusted EBITDA rose from $3.3 million to $14.5 million. With no long-term debt and a healthy cash position, Global-e is well-positioned for growth.
Despite a 95% surge in its stock price this year, shares trade at over 14 times trailing 12-month sales. Given its momentum and growth potential, Global-e could be a highly lucrative investment in the coming years.
