Growth Stock Alert: Are You Missing Out on These 120% Gainers?

Key Points

• Roblox has a brilliant strategy that allows it to capitalize on hot trends in the interactive entertainment industry.

• FuboTV is about to get a major injection of new subscribers after announcing a major deal with Disney's Hulu.

• 10 stocks we like better than Roblox ›

Tech stocks aren't the only way to make money in this bull market. Roblox (NYSE: RBLX) and FuboTV (NYSE: FUBO) are two notable growth stocks in digital entertainment that have seen their share prices soar 120% to 170%, respectively, year to date.

Do these stocks have room to run? Read on to learn what has caused these stocks to take off, and whether they are worth buying at these highs.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

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1. Roblox

Roblox stock has skyrocketed in 2025 after reporting strong growth on its platform, resulting from new game experiences and improvements to the user experience from artificial intelligence (AI). The stock took off in March following the release of Grow a Garden, which went viral, attracting millions of users per day in the weeks following launch. This release validates Roblox's ability to leverage its user-created content to capitalize on hot trends in interactive entertainment.

This release builds on the momentum Roblox was experiencing entering the year. For the second quarter, it reported a 21% year-over-year increase in revenue, while bookings (a non-GAAP adjusted measure of revenue) grew 51% year over year to more than $1.4 billion.

Roblox is aiming to capture 10% of the global gaming market over the long term, which could grow its annual revenue to nearly $20 billion, up from its trailing-12-month revenue of $4 billion. Part of the company's strategy is rolling out AI features to make creating experiences easier. This would lead to a steady flow of new content to support growth.

Roblox also has an opportunity to grow advertising revenue over the long term, as major brands seek exposure to a vibrant platform with a young demographic. Nike, Amazon, and Gucci are just a few of the brands that are on the platform. There's also the potential to build new revenue streams from monetizing its AI features over the long term.

There are a lot of positives to look forward to if you're already invested in Roblox stock, but with the shares trading at a high valuation after the recent surge, new investors shouldn't feel like they are missing out. The stock's current price-to-sales multiple of 20 has doubled year to date and is stretched well above its previous three-year average of 10 times sales. Investors will likely see the stock offer a better value point down the road to start a position.

Image source: Getty Images.

2. FuboTV

Shares of FuboTV have nearly tripled this year after announcing a deal with Walt Disney to combine with Hulu Live TV, and therefore, significantly expand Fubo's subscriber base. The deal is expected to close in Q4, although it still needs to pass regulatory approval.

The deal is a big win for FuboTV given the competitive intensity of the live TV streaming market. Between 2020 and 2022, FuboTV reported very high growth in revenue, but since 2023, growth has notably slowed. Competition from Alphabet's YouTube TV and other platforms could be part of the problem. However, the market is expected to grow 28% annually to $256 billion by 2032, according to Custom Market Insights.

FuboTV said its revenue declined 2.8% year over year in Q2. This is after reporting a 25% year-over-year increase in the year-ago quarter. While part of the decline was due to the loss of certain ad-related content from other content providers, its North American subscribers also fell 6.5% year over year, indicating a highly competitive market.

But Fubo's challenges are why investors are bullish on the Hulu combination. It will expand Fubo's subscriber base to 6.2 million in North America, up from 1.35 million North American subscribers reported in Q2. The combination with Hulu Live TV will significantly expand its reach and revenue opportunities.

Wall Street analysts expect Fubo's revenue to grow at a 26% annualized rate to reach $5.1 billion by 2029. The average price target among analysts that cover the stock is pointing to 31% upside from the current $3.45 share price.

However, nothing is set in stone as the Department of Justice (DOJ) is currently reviewing the deal for antitrust violations. Until that review is completed and the deal closes, the stock will likely continue trade around the current share price. The additional content and subscriber reach will certainly lift FuboTV's prospects, but the streaming landscape is still fluid with competition from Netflix, Amazon, and YouTube TV. This still makes FuboTV's long-term profitability uncertain, which could limit upside in the stock.

Should you invest $1,000 in Roblox right now?

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John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Netflix, Nike, Roblox, Walt Disney, and fuboTV. The Motley Fool has a disclosure policy.