Jim Cramer: Reddit Is 'Inexpensive' While SiTime Is ‘Expensive’
Key takeaways
- Cramer’s call pushes Reddit higher and SiTime lower, while his views on energy names hint at a shift toward Chevron and Enterprise Products.
- Reddit shares up 7.2% to $159.36
- SiTime shares down 4.5% to $501.59
- Exxon shares down 1.2% to $174.68
What happened
Jim Cramer on CNBC’s "Mad Money Lightning Round" urged investors to buy Reddit (NYSE: RDDT) as an inexpensive play, while calling SiTime (NASDAQ: SITM) expensive. Cramer highlighted Coherent (NYSE: COHR) and Lumentum (NASDAQ: LITE) as good, with Corning (NYSE: GLW) the best, and warned Valero Energy (NYSE: VLO) is a high‑risk double‑or‑nothing bet.
Why it matters
The commentary signals potential short‑term trading opportunities: Reddit’s stock rose 7.2% to $159.36 after the call, while SiTime fell 4.5% to $501.59. His remarks on Valero’s risk profile may prompt caution among investors holding the stock.
Short-term and longer-term
Short-term. Reddit’s 7.2% jump after Cramer’s endorsement suggests a momentum play; traders may look for a short‑term breakout or mean‑reversion.
Longer-term. Over the next few weeks, investors should monitor Reddit’s Q3 earnings for validation of the inexpensive thesis.