Jim Cramer Focused On These 9 Stocks Recently

4. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 87

A caller asked what was going on with Reddit, Inc. (NYSE:RDDT) and Cramer explained:

“Okay, so there was a big short squeeze. Let me explain this. First of all, I think the company is doing incredibly well, okay? It didn’t do as well as what people felt because the stock had gone up so much, people were expecting something perfect. Second, there was a gigantic short squeeze. People were betting against it, betting it wouldn’t be a good quarter and it didn’t come out a perfect quarter. Third, I think that Steve Huffman’s doing a great job and I would start right here, right here. Let’s say you wanna buy a hundred shares, buy 25. That’s what we’re doing, by the way, guys, we’re not buying a hundred shares all at once. We’re buying 25, 25, 25. Okay, we’re buying down. That’s what you do. Leave room. Okay, leave room.”

Reddit (NYSE:RDDT) operates a popular platform that allows users to participate in discussions, share content, and interact with different communities centered around common interests. Cramer extensively commented on the company more recently i.e. on March 14 as he discussed:

“Just like with Cava, Reddit hasn’t done anything wrong. Last month, they reported a terrific quarter, revenue growth accelerated all the way to 71%. 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 of 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.”