Jim Cramer has been on TV for two decades, and to his fans, he’s their high-energy coach who turns financial jargon into valuable information. And he does it in an entertaining fashion, while taking on regular calls from his viewers. No one else does that at his scale.
To his critics, he is a living bullhorn who sometimes mistakes volume for conviction and turns stock picking into theater.
Whichever camp you may belong to, it’s still a good idea to look into what he has to say about certain stocks. Cramer has industry-wide connections and has spent decades studying the market. His recent growth picks have done extremely well, and this one growth stock he is bullish on is on the same trajectory.
The growth stock in question is Reddit (NYSE:RDDT | RDDT Price Prediction). It had its IPO in March 2024, where it looked quite expensive. Today, RDDT stock is up over 600% from that “expensive” $34 IPO price. Cramer has been cheering it on along the way, and he hasn’t changed his mind.
Cramer thinks Reddit (RDDT) is the best growth story
On Mad Money’s August 4, 2025, episode, Jim Cramer discussed Reddit extensively. He pointed out, “This one’s been a huge winner for us. I’ve been following the company closely ever since it became public early last year, and I started recommending it about a year and a half ago, when it was trading around $50.” He later said, “I had no idea Reddit was capable of delivering a quarter as strong as the one they reported last Thursday night. These results literally were staggering, better than expected on basically every line. The company put up 78% revenue growth… Reddit’s core advertising business is on fire… [up] 84% year-over-year.”
At the end of his praise session on Reddit, he said, “I think Reddit might be the best growth story in the digital advertising space, and I bet the stock’s got a lot more room to run. So, I want you to stick with Reddit.”
Is Reddit a $1 trillion opportunity?
In a more recent episode aired on September 5, Cramer interviewed the CEO of HundredX, an alternative data firm used in hundreds of Goldman Sachs reports that collects feedback from customers with purchase intent. Cramer started off with Reddit, saying, “I want to start with one that we have liked because we think that, frankly, the stock is a terrific thing… We like the stock of Reddit.” The HundredX CEO replied, “Our data, including our latest August data, supports your thesis.”
The data firm CEO pointed out that people don’t like to browse sponsored ads for purchase decisions. Reddit offers a place where customers can gather bona fide community feedback. Of course, another way to bypass hopping from one website to another is through AI, but people still prefer “human characteristics” over machine-generated responses. Reddit benefits from being the middleman when links go out from its site, which the CEO called a “$1 trillion profit pool”.
Reddit’s solid financials come at a price
As Cramer pointed out, Reddit does have terrific financials. Revenue is growing extremely fast, and the profits are growing along with it. Gross margin expanded to 90.8%, along with net margin at 17.9%, up from -3.6% in Q2 2024. If that’s not enough, the adjusted EBITDA margin is 33.4%, up from 14% in the year-ago quarter.
Such a large increase in margins for a company that went public a year ago is almost unheard of.
Q2 revenue jumped from $281 million in 2024 to $500 million in 2025. Adjusted EBITDA jumped from $40 million to $167 million. For Q3 (next quarter), Reddit sees $535-545 million in revenue and $185-195 million in EBITDA. The average software company takes a year or more to grow that much.
Wall Street is paying accordingly. RDDT stock trades at 128 times forward earnings and 23.6 times forward sales.
Should you pay up?
No one disagrees that Reddit’s financials are stellar, and the argument mainly revolves around its premium. I share Cramer’s view and believe RDDT stock has more room to run.
Reddit has been outperforming expectations, but even if we take the midpoint of estimates, 2026 EPS is expected to jump 64.7% to $3.08. Revenue is expected to grow 32.6% next year to $2.74 billion and so on. Wall Street is unlikely to hold the premium while growth is slowing, but that sort of growth is likely to keep RDDT trading at a triple-digit earnings multiple.
This can take RDDT above $300 if the broader market cooperates over the coming year.
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