When a caller asked Cramer about Roku, Inc. (NASDAQ:ROKU), he commented:

“Alright. You know, there's been a bunch of people who don't like Roku. I'm not going to join that gaggle. I think the stock has some upside because they are doing some pretty terrific things in streaming, so I'm okay with it.”Jim Cramer Says Roku Stock "Has Some Upside"

A large movie theatre filled with people enjoying a film streaming on a smart TV.

Roku (NASDAQ:ROKU) runs a streaming platform that provides access to a broad selection of content. The company provides advertising and subscription services, sells streaming devices, Roku-branded TVs, smart home items, and audio products. It also enters licensing deals with service providers. JDP Capital Management stated the following regarding Roku, Inc. (NASDAQ:ROKU) in its Q4 2024 investor letter:

"Roku, Inc. (NASDAQ:ROKU) was down 15% in 2024 closing at $77.38 per share, about 20% above our cost basis. The company has an enterprise value of about $9 billion, no debt, and trades for a little over 2x estimated 2025 platform revenue (hardware revenue excluded).12 Roku has been undervalued and under-owned for so long that a positive re-rating of the stock to an acquisition value would justify a multi-bagger return…

While we acknowledge the potential of ROKU to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk.  If you are looking for an AI stock that is more promising than ROKU and that has 100x upside potential, check out our report about this cheapest AI stock.

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