Roku (NASDAQ: ROKU), in particular, was absolutely hammered — its shares crashed by 82% in 2022. As of this writing on Jan. 23, Roku shares are trading hands at around $55, with a price-to-sales multiple of 2.4. In comparison, the Nasdaq Composite index’s average annual return was 13.7% over the past 10 years.

If you sold Roku (NASDAQ: ROKU) stock last year, you’re not alone. After a boom during the pandemic, the stock crashed as revenue growth slowed significantly through 2022, and profits turned into losses after the company stepped up investments in its growth. The company just crossed 70 million active accounts on the platform earlier this month, adding 9.9 million new accounts in 2022, a year when subscriber growth was sluggish at major services like Netflix (NASDAQ: NFLX) and Walt Disney’s Disney+.

Alphabet’s video platform is now one of the most popular streaming channels and has plans that could potentially disrupt Roku’s business model.

Entertainment stocks got hit hard in 2022 as an influx of competition and a shift in consumer habits away from at-home entertainment dampened growth in the sector. To capture that growth and evolution in the entertainment sector, here are three stocks investors should be watching right now. Netflix (NASDAQ: NFLX) is still the leader in the industry, but the company is at a transition point in more ways than one.

Growth stocks have been crushed over the last year, but just as they ran too high during the pandemic, they now seem to have fallen too far during the sell-off. Valuations have crumbled, and investors have gone from thinking industries like e-commerce would have limitless growth to believing that they’re dead. Roku stock is down a whopping 89% from its peak in 2021, as seemingly everything has gone wrong for the leading streaming platform.