Jim Cramer Says "Reddit's Got A Lot More Room to Run"

Reddit, Inc. (NYSE:RDDT) is one of the stocks on Jim Cramer’s radar. During the episode, Cramer recommended “sticking” with the company stock, as he said:

“I gotta tell you, I think Reddit’s got a lot more room to run. I’m not kidding. This one’s been a huge winner for us. I’ve been following the company closely ever since it came public early last year and started recommending it about a year and a half ago, when it was trading around 50. I thought Reddit had tremendous growth… amazing digital advertising business because it’s basically the last bastion of the old school internet… Reddit kept running for the next couple of months, peaking at $230 in January, then it plummeted all the way back down to around 80 bucks at its post Liberation Day lows in April.

And you know what? That turned out to be an incredible buying opportunity, which is why I pounded the table on Reddit in May… Even as someone who adores this company, I had no idea Reddit was capable of delivering a quarter as strong as the one they reported last Thursday night. These results literally were staggering, much better than expected on basically every line…

I am a big believer in the AI revolution, you know that, but in fairness, a lot of AI-generated content is slop, as the kids say. Sometimes you just want to communicate with real human beings, and that’s what makes Reddit so valuable. Speaking of AI, management’s already licensing their data to AI platforms, and they believe this will eventually be a big source of business, although it’s still very early… If you got that, this stock will go up to 300, but they still haven’t figured that out yet, I think.

Here’s the bottom line: After last week’s tremendous quarter, I think Reddit might be the best growth story in the digital advertising space, and I bet the stock’s got a lot more room to run. So I want you to stick with Reddit. Can I say, I think it’s that good a story.”

Reddit (NYSE:RDDT) operates an online platform where users create and participate in interest-based communities to share content, exchange ideas, and engage in discussions.

While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.