Jim Cramer on Reddit: "I Like Reddit"

Reddit, Inc. (NYSE:RDDT) is one of the 12 stocks on Jim Cramer’s radar recently. A caller asked for Cramer’s opinion of the company, and he replied:

“I like Reddit. I think Huffman’s the real deal. I think that their advertising, you can reach people there… You can target an audience with advertising. It is so much cheaper than all these social medias and one day they’re going to be able, everyone’s going to find out about it. I’m telling you.”

Reddit (NYSE:RDDT) operates a platform where users participate in discussions, share content, and interact within topic-based communities. Maple Tree Capital stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q1 2025 investor letter:

“Reddit, Inc. (NYSE:RDDT) is Heartwood’s newest, and smallest, position. We anticipate growing this position in size over the coming quarters and years as the story parallels pretty closely to what we see in Grindr in the Jonagold portfolio. Reddit holds incredibly unique and structured user-generated data, which will be extremely valuable in the AI era. Additionally, their user base spends a ton of time on the app. It is far easier to monetize users if you have users! Reddit has spent decades acquiring a user base and is just at the beginning of their monetization journey. More people visit Reddit every day than they do Netflix. Their balance sheet is clean, but stock-based compensation and dilution are significant. We wrote a little more about Reddit here and expect to share more on our thesis shortly.”

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.