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Was Jim Cramer Right About Reddit, Inc. (RDDT)?

We recently published a list of Jim Cramer Nailed These 11 Stock Predictions. In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other stocks that Jim Cramer discusses.

Back in 2024, on May 16, a caller asked Jim Cramer for his view on Reddit, Inc. (NYSE:RDDT), following its IPO at the time. Cramer compared it to Pinterest and expressed strong support for its relevance in the current ad ecosystem, saying:

“Reddit’s easy. I’ve been saying buy, buy, buy. I think it’s one of those companies — like Pinterest — that is now part of the bundle of what advertisers want. They are reaching the right people when you can get them. And people age up in that thing. I think it’s a terrific, terrific stock. I really like Reddit.”

Reddit turned out to be a winning early call, doubling with a 100.83% increase since Cramer urged buying. Reddit, Inc. (NYSE:RDDT) is finally earning Wall Street’s trust as an ad platform with sticky users and growing monetization potential.

Cramer maintains the opinion that Reddit is a buy. Here’s what he said on May 14, 2025:

“So many stocks have made incredible comebacks over the past few weeks, but there are still plenty of names that are way down from their highs earlier this year. Take Reddit… while the stock soared 11% today, it’s off more than a hundred bucks from its February peak of $230 and change. I think it might be a buying opportunity here as long as you steel yourself for a potentially wild ride. It is a wild trader. See, two weeks ago, Reddit reported the stunning quarter, but the stock didn’t get any credit for it at all… Despite initially surging 18% in after-hours trading, Reddit stock finished the next session down more than 4%…

While I think Reddit’s absolutely worth buying at these levels, even after today’s monster move, stocks like these are only worth owning if you can stomach some serious volatility like we’re having right now. Keep in mind, we’re always one presidential tweet or whatever you want to call it away from these kinds of names falling out of favor all over again. That’s why I say Reddit’s a buy, but only if you’ve got the intestinal fortitude to stick around for the long haul.”

Overall, RDDT ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some 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.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

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The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

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