Jim Cramer Discussed These 15 Stocks Recently

1. Reddit Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 87

Cramer also addressed Reddit’s (NYSE:RDDT) recent pullback, following a disappointing quarterly report and a drop in active users due to a change in Google’s algorithm that triggered the selloff.

“Reddit was a red-hot IPO, running to $230 last week before getting clobbered by a quarterly miss. What caused it? A change in the Google search algorithm. No hot stock can afford to have that happen. […] I’ve been there. When I ran TheStreet, Google changed its algorithm multiple times without warning, and we’d miss a quarter by a mile. It happens. That’s why I think you should take advantage of this pullback and do some buying.”

Cramer sees Reddit’s potential as a takeover target for major AI players:

“This company’s a content goldmine. It could be gobbled up by Meta, Grok, or ChatGPT. That’s why the stock will keep going and going, retail investors love it, and that love keeps driving it higher after every single dip.”

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 doing so within a shorter timeframe. 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.

Disclosure: None. This article was originally published on Insider Monkey.