In the latest episode of Mad Money, Jim Cramer expressed support for Reddit and Rocket Lab while advising against an investment in SiTime. Cramer’s strategy focuses on purchasing stocks that have experienced significant price declines rather than those priced for high growth, particularly as interest rates remain elevated following the Federal Reserve's September hike.
Reddit shares have fallen more than 12% over the past three months. Despite this, CEO Steve Huffman reported a 61% revenue increase, though he noted that search referrals from Google were inconsistent in July. Cramer indicated an interest in acquiring Reddit shares following the company's recent downward trend.
Rocket Lab faces a delay in the launch of its Neutron medium-lift rocket, which is now scheduled for 2027. Despite this setback and the company's current lack of profitability, Rocket Lab reported a record backlog of $2,36 billion in the second quarter, representing a 137% year-over-year increase.
Regarding SiTime, which produces silicon timing chips, Cramer declined to recommend the stock due to its high valuation. He emphasized a general avoidance of expensive stocks across all sectors. Meanwhile, market futures currently estimate a 27% probability of another interest rate hike during the Federal Reserve meeting scheduled for October 27-28.
