Jim Cramer Was Recently Asked About These 8 Stocks

1. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 80

Reddit, Inc. (NYSE:RDDT) is one of the stocks Jim Cramer was recently asked about. A caller asked if they should hang on to the stock or trade around it. In response, Cramer said:

“Okay… I am not going to recommend that you trade around this. I’ll tell you why. It’s at $42 billion. I think this company has within it more quality things to train on, more quality ideas, more quality writing than people realize. It’s incredibly undervalued. Steve Huffman should come on the show. We would go over many of the different sectors. I go to Reddit constantly. I don’t know about you. I think it’s worth a heck of a lot more than it’s selling for.”

Reddit, Inc. (NYSE:RDDT) runs an online platform that hosts communities where users connect over shared interests, exchange ideas, and share content such as posts, images, and videos. Cramer mentioned the company while discussing the stocks related to the AI space during the November 3 episode. Mad Money’s host stated:

“Who else can make a fortune from AI without much upfront investment? Here’s when you haven’t thought about it all, and it’s Reddit… Not only did Reddit put up nearly 70% revenue growth, their margins have soared. They had a 91% gross margin, 40% adjusted EBITDA margin. That’s very impressive for a company that was barely profitable when it came public; a lot of people felt it would never be profitable. There’s a reason the stock jumped 7.5% last Friday, though it did give back a bit of that today.

The other number that stood out to me… on Reddit’s report was the company’s capital expenditures figures came in at 2.1 million in the third quarter… See, Reddit’s partnering with the chatbots to license its data because that data is essential for training generative AI models. Keep that word in mind. Companies like OpenAI and Google already pay Reddit to license its data, and though this is still a relatively small portion of the business, I think it can grow very big over time. Why? Because many of the other generative AI companies are allegedly using Reddit’s data without paying them a dime… Keep in mind, most of these chatbots rely on Wikipedia and Reddit.”

While we acknowledge the potential of Reddit, Inc. (NYSE:RDDT) as an investment, our conviction lies in the belief that 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 RDDT and that has 100x upside potential, 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.

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