Jim Cramer is a big fan of social media company Reddit, which on Thursday reported big increases in sales and bottom line profits. “I really like this company. I wish I could buy it today for a charitable trust,” Kramer said on “Squawk on the Street” Friday. Kramer used hyperbole to get his point across. In general, volatile stocks like Reddit are not suitable for the Trust, a diversified portfolio used by CNBC Investment Club. Friday’s trading is one example. Reddit shares initially jumped 9% on Friday morning, but have since reversed and are down nearly 5% in intraday trading. Reddit’s stock price fell 35% in 2026 alone. Reddit went public in March 2024 at $34 per share. So even in the downturn, the stock is up 320% since then. “They’re doing incredibly well in advertising…and a lot of that is because they’re offering great deals,” Kramer explained. “Advertisers know that instead of going to[Meta CEO]Mark Zuckerberg and spending a lot of money on Instagram, the fees are incredibly low and targeted.” Cramer pointed to another core part of Reddit’s revenue: selling data to large-scale language models for training. “It’s one of the greatest things in the world that they have more data,” Kramer said, adding that this data will continue to sell. Reddit’s fourth-quarter revenue was $726 million, beating the Street consensus of $665 million. Earnings per share were $1.24, compared to expectations of 94 cents. Reddit’s guidance also beat Street expectations. “We achieved all of our goals, built real momentum across our business, and proven our unique community model at scale,” Reddit CEO Stephen Ladd Huffman said on the company’s earnings call. During its earnings call, Reddit also announced a $1 billion buyback program with no set expiration date.
