Jim Cramer believes that advertisers prefer Roku for their advertising campaigns.

Jim Cramer recently discussed the performance of Roku, Inc. (NASDAQ:ROKU) on his show, offering insights into the company's stock performance and its growing popularity among advertisers. Cramer, responding to a viewer's question about the company, stated, "I like it, okay? There's a lot of positive buzz surrounding the numbers. It's been continuously rising, and I think it makes sense because that's where the advertisers want to be." Cramer's endorsement of the company underscores its increasing prominence in the advertising space.

Roku, Inc. (NASDAQ:ROKU) operates a popular TV streaming platform that gives users access to a variety of content, such as television shows, movies, news, and sports. In addition to its streaming platform, Roku also sells devices, including smart TVs and audio products, and offers a comprehensive range of digital advertising services. Roku's ecosystem provides advertisers with a significant opportunity to reach a wide audience, further enhancing its attractiveness to brands looking to target consumers through targeted, digital campaigns.

In its second-quarter 2025 investor letter, RGA Investment Advisors shared their experiences with Roku, offering a detailed perspective on the company's performance over the years. They wrote, "Roku has certainly been a wild ride for us. We first invested in late 2018, sold a few times along the way, but maintained a significant position throughout the volatility. We learned important lessons about holding onto high valuations, with the goal of spreading tax burdens over the years. We've decided never again to lock ourselves into high valuations during a downturn, as the market has a way of reducing tax obligations over time. During the tariff crash, we actually increased our position significantly."

RGA's account emphasizes the dynamic nature of Roku's stock performance, reflecting the company's volatility. Despite the ups and downs, RGA maintained a significant stake in Roku over the years, acknowledging both the challenges and rewards of holding onto a stock with high valuations during market downturns. The investment firm learned valuable lessons on managing tax obligations and market fluctuations while navigating the stocks volatility.

However, despite recognizing Roku's potential, RGA believes that some artificial intelligence (AI) stocks offer greater upside potential with less risk. RGA noted that, in comparison to Roku, certain AI stocks may present more favorable opportunities for investors seeking to balance high returns with minimized risks. The firm highlighted the benefits of AI stocks, particularly those poised to benefit from trends such as the impact of the Trump-era tariffs and the onshoring movement. For investors looking to explore undervalued AI stocks, RGA suggested checking out their free report detailing the best short-term AI stocks to consider. Additionally, RGA emphasized other stocks with strong potential, like those listed in their report on stocks likely to double in value over the next three years.

While Roku remains an attractive choice for advertisers seeking to reach digital audiences, the market continues to evolve, and the rise of AI and other emerging technologies may shift investor attention toward different opportunities. As always, investors are encouraged to carefully evaluate both risks and rewards when making decisions regarding high-growth stocks, especially those in rapidly changing sectors like digital advertising and artificial intelligence.