• After shares of Reddit jumped more than 11% on Wednesday, C온라인카지노사이트's Jim Cramer explained why he's enthusiastic about the company's future.
• He recommended investors buy Reddit, but only if they have substantial risk tolerance.

After shares of jumped more than 11% on Wednesday, C온라인카지노사이트's explained why he's enthusiastic about the company's future. He recommended investors buy Reddit, but only if they have substantial risk tolerance.

"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 like we're having right now," he said. "Keep in mind, we're always one presidential tweet — or whatever you want to call it — away from these kinds of names falling out of favor all over again."

Despite the day's gains, Cramer surmised that there's still a buying opportunity because the stock is down substantially from its February highs.

Although the platform's stock didn't start to climb after it posted at the beginning of May, Cramer found the results impressive. Reddit comfortably beat Wall Street's expectations for earnings and revenue, and management issued better-than-expected guidance.

Cramer brushed off aspects of the quarter that gave analysts pause, saying he thinks fears about Reddit's ability to keep up user growth are overblown. Management is more cautious about user forecasts for the near term because is changing its search algorithm, Cramer said.

"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," Reddit CEO Steve Huffman said on the earnings call.

Reddit's advertising business is also encouraging, Cramer said. Management seems confident about the future despite Wall Street's pervasive worries that a potential economic slowdown could hurt the advertising industry, he continued. The platform reported that active advertisers grew more than 50% year-over-year during the quarter. Huffman claimed on the earnings call that "about 40% of the conversations on Reddit are actually commercial in nature," which Cramer said is attractive to advertisers. Reddit also stands to unlock a lucrative revenue stream because it's inked deals to let generative artificial intelligence outfits like OpenAI access data in order to train their large language models, Cramer added.

Cramer dubbed Reddit a platform whose authenticity is unique in the current social media landscape, which is rife with bots. He also said Reddit is "one of the few sites that still has that old-school internet vibe," and users don't have to create an account to view content.

"In a world that seems increasingly dominated by fake accounts, AI-generated answers and clickbait garbage, Reddit stands out as a place where you can get real answers from real people — especially for questions and scenarios that are too niche for traditional search engines," he said.

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