We recently published a list of Top 10 Stocks on Jim Cramer’s Radar as Trump Tariffs Wreak Havoc Across Global Markets. In this article, we are going to take a look at where Reddit Inc (NYSE:RDDT) stands against other top stocks on Jim Cramer’s radar as Trump tariffs wreak havoc across global markets.
Jim Cramer in a latest program on CNBC said that President Donald Trump’s new tariffs were much worse than expected. Cramer believes investors were getting “tired” of worrying about the tariff threat and went into a “bring it on” mode ahead of the Wednesday announcement.
“Regular viewers know that I’ve never been a huge fan of free trade. It would be fine if everybody plays by the rules, but we’re the only country that plays by the rules. I want fair trade instead, which means tariff those who tariff us just as hard. Of course, I’ve been hoping for reciprocal tariffs, and that’s what we allegedly got, even if they were far more severe than I’d hoped for. With reciprocal tariffs, we hammer specific countries for putting up specific trade barriers or subsidizing specific industries. While we got reciprocal tariffs, I never expected them to be this high, nor did many other people. From Wall Street’s perspective, Trump might as well have used a meatax, which is what we were most afraid of. The term reciprocal meant nothing in the end; the term punitive is more accurate.”
Cramer Calls China an ‘Insidious Octopus’
Cramer called China an “insidious Octopus” and mentioned how the country used several “loopholes” to enter the US and European markets. However, he believes the tariffs will result in higher prices for consumers. Cramer said Trump does not “care” about falling stock prices or rising consumer prices.
“Trump doesn’t seem to care about the stock market this time around. Why should he care about certainty, which I’ve said over and over again is what makes investors happy? He’s not trying to make investors happy. He’s not about happiness for us. He’s about making these countries bend to his will, and if it causes inflation, then it causes inflation. He never promised you a rose garden stock market, and I sure didn’t see one in the Rose Garden today.”
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For this article, we picked 10 stocks Jim Cramer recently talked about during his programs on CNBC. With each company 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Reddit Inc (NYSE:RDDT)
Number of Hedge Fund Investors: 52
Jim Cramer in a latest program on CNBC recommended investors buy Reddit Inc (NYSE:RDDT) shares on the recent pullback. Cramer said the only bear case for the stock is if we hit a recession, the possibility of which is low according to him.
“They reported a terrific quarter with revenue growth accelerating all the way to 71%. The problem here is that this is exactly the kind of stock that people dump whenever we get hit by a market-wide meltdown — it’s almost programmed. The only scenario in which I’d get more bearish on Reddit Inc (NYSE:RDDT) 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 Inc (NYSE:RDDT) is pretty darn enticing now that the stock’s practically been cut in half. Right now, this thing’s selling for — okay, these numbers might freak you out, Al, but don’t — roughly 58 times this year’s earnings assessments and 39 times next year’s. Okay, it’s not crazy for a great regional-to-national story. I’ve seen this over and over again.
Plus, based on the way Reddit Inc (NYSE:RDDT) 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 future earnings are likely to come in higher than expected. Again, as long as there’s no recession and this thing continues to spread and grow — not just nationally but all over the world — Reddit Inc (NYSE:RDDT) is a winner, and I think it’s going to be very, very big internationally.”
Columbia Threadneedle Global Technology Growth Strategy stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q4 2024 investor letter:
“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”
Overall, RDDT ranks 5th on our list of top stocks on Jim Cramer’s radar as Trump tariffs wreak havoc across global markets. While we acknowledge the potential of RDDT, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. 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.