Wood doesn't mind buying an old company if it's teaching the world new tricks. Roku stock is down nearly 90% from last year's peak, but its business is holding up a lot better than its stock chart.

Its latest guidance suggests that there will be some near-term challenges to its ad-dependent business model, but the loudest bear argument - that we won't stream as much with the pandemic fading in the rearview mirror - has proved to be toothless. Active users, hours streamed on the platform, and average revenue per user all increased by healthy double-digit percentages in its latest quarter. Toss in a strong cash-rich balance sheet, and Roku is trading at an enterprise value that is less than two times trailing revenue for the first time in its history.

The once-profitable leader of streaming video is in the red, and Wall Street pros see the losses continuing until 2026.īut the stock has never been cheaper based on its revenue multiple. If you define bargains solely on profit multiples, you might be tempted to change the channel when it comes to Roku.

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