After a considerable jump in Reddit's share value, Jim Cramer expressed a confident outlook for the company. He advises investors with high risk tolerance to buy Reddit, pointing to impressive earnings exceeding Wall Street expectations and a significant growth in active advertisers. Although there are concerns regarding user growth due to changes in Google's search algorithm, Cramer believes these fears are exaggerated. He noted that Reddit's prominence is reflected in its being a top search term, indicating its strong media position and potential for future growth.
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.
In the last 90 days, the word Reddit was the sixth most searched word on Google between news and Trump, which incidentally also says something about our position in the media landscape.
Management seems confident about the future despite Wall Street's pervasive worries that a potential economic slowdown could hurt the advertising industry.
Reddit's advertising business is also encouraging, with active advertisers growing more than 50% year-over-year during the quarter.
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