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2 Technology Stocks That Could Help Make You a Fortune

Eli GrantFriday, Dec 20, 2024 4:27 am ET
4min read


In the ever-evolving tech landscape, finding the next big winner can be a daunting task. However, two companies stand out as potential game-changers with the potential to generate significant returns for investors: MicroStrategy (MSTR) and Roku (ROKU). Both companies have unique growth strategies that could fuel their long-term success.

MicroStrategy's Bitcoin Bet

MicroStrategy, a business intelligence and analytics software company, has made a significant bet on Bitcoin. The company has purchased over 252,000 Bitcoins, making it one of the largest corporate holders of the cryptocurrency. This strategy, led by chairman Michael Saylor, is a direct bet on the future value of Bitcoin. If Saylor's optimistic outlook on Bitcoin's pricing prospects materializes, MicroStrategy could amass a cash reserve rivaling that of tech giants like Apple or Microsoft.



The potential benefits of MicroStrategy's Bitcoin strategy are twofold. First, if Bitcoin's value appreciates, the company's investment could generate substantial returns. Second, the deep pockets that a large Bitcoin reserve would provide could enable MicroStrategy to invest in top-notch engineers and innovative projects, potentially transforming the company into a software giant.

Roku's International Expansion

Roku, a leading provider of streaming devices and services, has been expanding its reach beyond North America. The company's early leadership in the connected devices market, with a 48% share in North America, has provided valuable insights and a proven business model for global expansion. Roku's strategy involves aggregating content from various streaming services, making it an attractive option for consumers worldwide.



Roku's international expansion is driven by several key factors. The company's low-cost hardware and software solutions, combined with its ability to adapt to local market preferences, have contributed to its international growth. Additionally, Roku's strong brand recognition and strategic partnerships have further bolstered its expansion efforts.

Both companies' valuations suggest potential upside. MicroStrategy's price-to-earnings ratio (P/E) of 11.5 is lower than the industry average of 20, while Roku's P/E of 14.5 is below the industry average of 25. This undervaluation, coupled with their strong growth prospects, leaves room for potential appreciation.

In conclusion, MicroStrategy and Roku are two technology stocks with the potential to generate significant returns for investors. MicroStrategy's Bitcoin strategy and Roku's international expansion are well-positioned to drive long-term growth. While both companies face challenges, their unique growth strategies and undervalued status make them attractive investment opportunities. As always, it is essential to conduct thorough research and consider your risk tolerance before making any investment decisions.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.