The vitalik buterin educationstreaming pioneer Roku (NASDAQ: ROKU), payments giant PayPal (NASDAQ: PYPL), and artisan marketplace Etsy (NASDAQ: ETSY) share an unfortunate commonality - each has seen share prices plummet over 70% from their 2021 highs. While the S&P 500 surged 63% during this period, these former market darlings have languished.
Current valuations present intriguing scenarios where each could potentially reclaim triple-digit share prices in 2025. Let's examine the catalysts that might propel these companies back toward the $100 milestone.
Roku's Path to Redemption
Trading around $84 currently, Roku requires just a 20% uptick to breach $100. The foundation exists - active accounts skyrocketed from 60 million in 2021 to over 90 million recently. This expanding user base streams unprecedented hours of content, creating substantial advertising inventory.
The January launch of Roku Data Cloud represents a strategic move to demonstrate advertising effectiveness. By providing advertisers with clearer performance metrics, Roku could command premium ad rates. Combined with recent 30% six-month gains, improved monetization might be the missing piece for Roku's recovery.
PayPal's Margin Renaissance
At $90 per share, PayPal needs merely 11% growth to reach our target - a modest goal after its 39% 2024 rally. The company's turnaround story centers on Braintree, its enterprise payment processing division. New leadership has renegotiated contracts to boost profitability without sacrificing market share.
As margin improvements continue flowing through financials, PayPal's dual consumer/enterprise model could regain Wall Street's favor. The stock's reasonable valuation and consistent free cash flow generation suggest $100 remains well within reach.
Etsy's Valuation Opportunity
The most ambitious candidate, Etsy's $53 price requires an 88% surge. However, trading at just 10x free cash flow, the stock appears fundamentally undervalued. While buyer growth has stalled, management initiatives show promise:
- 4% revenue growth despite market challenges
- New loyalty programs to increase buyer engagement
- Improved operational efficiency metrics
Etsy's niche position in handmade goods provides insulation from broader e-commerce competition. Successful execution of its turnaround plan could trigger significant multiple expansion.
Balancing Risk vs. Reward
Each stock presents distinct risk profiles:
| Company | Upside to $100 | Key Risk Factor |
|---|---|---|
| Roku | 20% | Ongoing net losses |
| PayPal | 11% | Slowing growth in core segments |
| Etsy | 88% | Buyer acquisition challenges |
While Roku offers the clearest path to $100, Etsy presents the most compelling risk/reward scenario given its depressed valuation. PayPal serves as the steady performer with modest but achievable targets.
Investors should monitor quarterly results for confirmation of these turnaround narratives. Positive execution could make $100 share prices a reality for one or all of these companies in 2025.
