We recently published 9 Stocks Jim Cramer Talked About. Reddit Inc. (NYSE:RDDT) is one of the stocks that Jim Cramer talked about.
Reddit Inc. (NYSE:RDDT) is one of Jim Cramer’s top stocks in the social media sector. For more than a year, the CNBC TV host has praised the firm’s potential in the AI age due to its access to large amounts of user data. Needham kept a Buy rating and a $300 share price target on the firm in February following Reddit Inc. (NYSE:RDDT)’s fourth quarter earnings. The financial firm pointed out that the social media company’s improving margins and potential to benefit from large language model (LLM) training were some factors that drove its optimism. Unlike Needham, Truist raised Reddit Inc. (NYSE:RDDT)’s share price target. It bumped the target price to $275 from $270 and kept a Buy rating. The bank pointed out that the social media company excelled in enabling its users to communicate with each other. Even though Reddit Inc. (NYSE:RDDT)’s shares are down by 38% year-to-date, Cramer continues to believe in the firm:
“You know what Reddit is in Latin? To give back. And a lot of shareholders felt, that when it was down 34%, they were given back a lot of their money. But today is a good day. And one of the reasons why it’s a good day is because, they are doing incredibly well on advertising. Advertising is up very big and a lot of that is because, they offer a bargain. And advertisers know that. Because instead of having to go give Mark Zuckerberg a check and spend a lot of money with Insta, their rates are incredibly low. And it’s targeted. I mean let’s say you wanted to hit, only people who drank tequila. Well, I mean, that’s expensive to be able to buy tequila than it is to go get Zuckerberg to try to figure out through AI what words might indicate that you like Cuervo.
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“One of the things that I thought was that, boy, someone should just go buy them. I mean, they have fabulous data. And they can sell. Every time Steve Huffman used to do TV, I would say, hey how much is the data going for? And it’s going for a lot. And I think people should recognize, this is actually a great store holder of value. And I like the company very much, and I wish I could buy it today for my charitable trust.”
While we acknowledge the risk and potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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