We recently published a list of Jim Cramer’s Latest Calls: Top 10 Stocks. In this article, we are going to take a look at where Reddit Inc (NYSE:RDDT) stands against other stocks highlighted in Jim Cramer’s latest calls.
Jim Cramer in a recent program talked about Bitcoin and reminded investors that he has always believed in the cryptocurrency.
“I want to discuss Bitcoin, really. I do—not to the detriment of stocks but in addition to stocks. I come to praise Bitcoin, not buy it. First, let’s dispel the idea that I’ve never believed in Bitcoin. Now, if you search YouTube, you can see that I first bought Bitcoin on September 15, 2020, when it was at just over $10,000.”
Cramer said he likes the idea of Bitcoin being the store of value and said he always recommended investors to allocate 10% of their portfolio to the currency. However, he again urged investors to look to stocks for the rest of their portfolios.
“I heard Fed Chief J. Powell talk about how he believes people are buying Bitcoin as a store of value, like gold, because there’s not much transaction done in Bitcoin. I’ve always endorsed keeping up to 10% of your portfolio in gold as a kind of insurance against the world’s lunacy. But for years now, I’ve also been saying Bitcoin is a fine alternative to gold for that 10% position. Why not?
I think the federal budget deficit is at impossible levels…Sure, you might have been all in on Bitcoin. You know what? Terrific. Me too. But what if I told you there are indeed other ideas hidden in plain sight in the stock market? Ideas that you could have owned with the other 90% of your portfolio that wasn’t Bitcoin.”
Cramer then mentioned a few stocks that have posted dramatic gains since their IPOs to show investors the power of stock investing.
READ ALSO: Jim Cramer’s Latest Lightning Round: 11 Stocks to Watch and Jim Cramer on AMD and Other Stocks
For this article, we watched the latest programs of Jim Cramer and picked 10 stocks he recently talked about. With each stock we have mentioned the number of hedge fund investors. 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 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Investors: 52
Answering a question about Reddit, here is what Cramer said in a latest program on CNBC:
“I think Reddit’s fabulous. What can I say? I know it’s up a great deal, but I think Steve Huffman’s doing a fabulous job. I’m not a seller.”
With over 80 million daily active users, Reddit Inc (NYSE:RDDT) remains one of the fastest-growing social media platforms in the world. While Facebook and Twitter show signs of maturing growth, Reddit Inc (NYSE:RDDT) still has huge upside potential as more and more people flock to Reddit discussion boards for authentic opinions and discussion. User input from millions of people on various topics freely accessible to anyone is Reddit Inc (NYSE:RDDT)’s moat. As of 2023, users posted 16 billion comments on the platform, according to the company. That’s why companies are flocking to pay money to Reddit to use its data to train their AI models. Reddit Inc (NYSE:RDDT) has a licensing agreement with Alphabet Inc.’s Google worth $60 million to help train large language models. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years. The company generated approximately $20 million from AI content deals last quarter and expects to exceed $60 million by year-end. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years.
Overall, RDDT ranks 4th on our list of stocks highlighted in Jim Cramer’s latest calls. While we acknowledge the potential of RDDT, our conviction lies in the belief that under the radar 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.
