Jim Cramer Just Called a Stock Down Nearly 30% This Year ‘Ridiculously Cheap’
Jim Cramer called Reddit (RDDT) 'ridiculously cheap' at $166, despite a 29% YTD decline. Reddit's Q2 revenue grew 61% to $804.9M, beating estimates. The company repurchased shares at an average $158, with $760M remaining in buyback authorization. Analysts target $215. Reddit guided Q3 revenue to $860M-$870M.
How this was made
The 30-second read
Why it matters
The earnings beat and buyback provide a short‑term bullish catalyst, but the search traffic risk may cap upside.
Market read
Reddit's earnings and guidance could influence sentiment in the broader digital media sector and affect related ad‑tech stocks.
What to watch
Potential competition from AI‑driven content platforms and macro‑economic pressure on ad spend.
Background
Reddit's Q2 earnings beat expectations with strong revenue and profit growth, while management highlighted a buyback and warned about search traffic volatility.
Ticker impact
Reddit reported Q2 2026 results with 61% revenue growth, $252.8M net income and announced Q3 guidance, plus a $157.57 buyback price.
Potential modest upside if price stays below buyback average; downside risk if search traffic weakness persists.
Earnings beat and attractive buyback provide a catalyst, yet the highlighted search referral risk tempers enthusiasm.
Market effects
Highlights volatility in digital advertising and user‑acquisition dynamics for social media platforms.
U.S. growth stocks may see mixed reactions as Reddit's results contrast with broader tech earnings.
Limited to investors tracking high‑growth internet media names.
Counterpoint
Search referral decline could erode traffic quality, making the stock overvalued despite the buyback.
Key entities
- companyReddit Inc.
Social media platform reporting Q2 2026 results.
- personJim Cramer
Host of Mad Money who called Reddit "ridiculously cheap".
