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Jim Cramer Thinks Snap (SNAP) Needs a ‘New CEO’

We recently published a list of 10 Jim Cramer Stocks to Buy and Sell Now. In this article, we are going to take a look at where Snap Inc. (NYSE:SNAP) stands against other stocks that Jim Cramer discussed.

Jim Cramer in a latest program on CNBC talked about President Donald Trump’s attack on Federal Reserve Chair Jerome Powell and said he was expecting this to happen “weeks ago.” Cramer said that he “likes” Powell and thinks the central bank chief is now in a difficult situation. Cramer thinks it’d be “illegal” for Trump to fire Powell.

“The Federal Reserve never cuts rates when inflation’s out of control, which it very well could be once the tariffs are all in. I think the Fed chief wants to find out if that’s going to happen. I like Powell, you know that. I think he’s generally done a good job, a good public servant. Unfortunately, right now, he’s stuck between a rock and a hard place. Now, history says he should be doing exactly what he’s doing, but history is now in the eye of the beholder, and there’s only one beholder in this whole country, and it ain’t J. Powell.”

Cramer said that tariffs will result in higher prices, and that will in turn make the central bank’s job difficult because it cannot cut rates when prices are going up.

READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.

For this article, we picked 10 stocks Cramer was talking about in his recent programs. With each stock, we have mentioned the number of hedge fund investors. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Snap Inc. (NYSE:SNAP)

Number of Hedge Fund Investors: 34

When asked about Snap Inc. (NYSE:SNAP) during a latest program on CNBC, Jim Cramer mentioned a few issues and gave an idea to the company:

“They did too much stock-based compensation. They didn’t get the balance sheet right. They still, I mean, there’s possibility they make some money. I got an idea for them. New CEO, by the way, there’s no crime in that.”

RiverPark Large Growth Fund stated the following regarding Snap Inc. (NYSE:SNAP) in its Q3 2024 investor letter:

Snap Inc. (NYSE:SNAP): SNAP was a top detractor in the third quarter following a second quarter earnings report that fell short of high expectations. While the company reported strong Daily Active User (DAU) growth (432 million +10% year-over-year) and time spent watching content on the app (+25% year-over-year), revenue of $1.24 billion was below the midpoint of the company’s guidance and slightly below investor expectations. Management pointed to weakness in their Brand Advertising vertical, specifically highlighting demand for retail, technology, and entertainment advertising for slowing through the quarter. SNAP did exceed EBITDA expectations by $15 million due to better operating leverage, but guided third quarter EBITDA below expectations as the company plans to make some targeted investments around AI infrastructure.

We believe that improvements in SNAP’s ad platform and continued growth in DAU should lead to continued acceleration in revenue growth over the next several quarters and years. With 2023 revenue of $4.6 billion (as compared with Meta’s $134 billion), we believe SNAP has a long runway for both revenue growth and expanded profitability.”

Overall, SNAP ranks 8th on our list of stocks that Jim Cramer discussed. While we acknowledge the potential of SNAP as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than SNAP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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