We recently published a list of Jim Cramer Discussed These 10 Stocks Recently. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other stocks that Jim Cramer discussed recently.
Last Friday, Jim Cramer, host of Mad Money, raised an interesting point about the state of IPOs and their potential growth, had the new administration approached tariff policies more thoughtfully.
“It’s worth thinking about this week for a moment and what it would’ve meant just a few months ago if things hadn’t gotten so far off the rails. What would’ve really happened? What would we have been talking about if it hadn’t been about these ephemeral issues of trade and tariffs?”
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He questioned what the conversation would have been like if the White House had taken a more balanced and measured stance in negotiations with trading partners, one that would not have negatively impacted the stock market or shaken consumer confidence. He speculated that if that had been the case, we might have been celebrating our tenth multi-billion dollar IPO by now.
“Except unfortunately the new president and antitrust regulators are much tougher than anybody expected, even if they’re tough in a different way from the Biden people. Turns out the Trump regulators share the same anti-business philosophy as the Biden people.”
He also discussed how recent IPOs, which were once among the most talked-about stocks, have now turned into disappointing performers in just a month. Cramer noted that when fear takes hold of the market, investors often panic and sell off even the most promising stocks. In fact, he pointed out that many of the recent IPOs have been hit hard, as nervous investors are quick to cash out.
“Now here’s the bottom line: Even after today’s rebound, tons of stocks are still so far down from their highs and I think we’ve reached a point where you can hunt for opportunities in the hardest hit names assuming you stick with the best operators.”
Our Methodology
For this article, we compiled a list of 10 stocks that were discussed by Jim Cramer during the episode of Mad Money aired on March 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey’s database of over 1,000 hedge funds.
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).
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Reddit, Inc. (NYSE:RDDT)
Number of Hedge Fund Holders: 87
Cramer noted that similar to Cava, Reddit, Inc. (NYSE:RDDT) has not made any major mistakes. He highlighted that the company reported an excellent quarter last month, with revenue growth reaching 71%. He added:
“The problem here is that this is exactly the kind of stock that people dump whenever we get hit with the market-wide meltdown. It’s almost programmed. The only scenario in which I’d get more bearish on Reddit’s fundamentals would be if the current period of macro uncertainty turns into an outright recession because a recession would really hurt their advertising business. In a recession, anything that depends on ads does get crushed but I don’t think we’re headed for a recession, which means Reddit’s pretty darn enticing now that the stock’s practically being cut in half…
Plus, based on the way that Reddit’s been beating the estimates, I wouldn’t be surprised if the stock ultimately proves to be much cheaper than it looks right now, if only because the future earnings are likely to come in higher than expected. Again, as long as there’s no recession, as long as this thing continues to be able to spread and grow, not just from this nation, I should say all over the world, Reddit’s a winner, and I think it is going to be very big internationally.”
Reddit (NYSE:RDDT) operates a popular platform that allows users to participate in discussions, share content, and join different interest-driven communities.
Overall, RDDT ranks 2nd on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of RDDT 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. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.