Jim Cramer Picks Fallen Stocks Reddit and Rocket Lab, Avoids Pricey SiTime

On Thursday's "Mad Money," CNBC host Jim Cramer endorsed Reddit (RDDT) and Rocket Lab (RKLB) while skipping SiTime (SITM), preferring stocks that have dropped over those priced for expansion as interest rates rise.

The selections cover social media, space rockets, refiners, and chips, but one common factor ties them together. The Federal Reserve increased rates in September, and Cramer gravitated toward stocks that had already experienced a decline.

Does a Sell-Off Make Reddit and Rocket Lab Worth Owning?

Cramer stated that he wants to purchase Reddit following its decline this year. Meanwhile, one caller noted that investors focused on lost, unprofitable Google traffic without considering Reddit's revenue from direct users.

However, CEO Steve Huffman described Google search referrals as choppy in July, even though revenue grew by 61%.

Regarding Rocket Lab, Cramer said the failed launch affected the stock less than he anticipated. On Wednesday, Rocket Lab postponed the debut of its Neutron medium-lift rocket to 2027, Bloomberg reported.

In the second quarter, Rocket Lab recorded a record backlog of $2.36 billion, a 137% increase year over year. Yet it remains unprofitable, and Neutron is central to its profitability plan.

Where Does Oil Risk Sit in Cramer’s Energy Calls?

Cramer favors Chevron over Exxon unless tax issues make a swap problematic. He told a caller that Enterprise Products Partners generates revenue from natural gas liquids like ethane and propane, not from oil.

Cramer described Valero (VLO) as a binary bet tied to the crack spread, which is the difference between crude oil costs and refined fuel prices. He linked that spread to the Iran conflict.

On SiTime, a maker of silicon timing chips, he drew the most definitive boundary.

“It’s expensive, and I’m not recommending expensive stocks in tech or out of tech.”

Jim Cramer, host of CNBC’s “Mad Money,” CNBC

Should the Fed continue rate increases, the same valuation metric could extend to crypto. Grayscale’s rate hike outlook argues that higher rates impact assets unevenly.

The Fed meets on Oct. 27-28, and futures indicate roughly a 27% probability of another rate increase.