Reddit, Inc. (NYSE: RDDT) received a high-profile endorsement from CNBC’s Jim Cramer during the September 17 episode of his “Mad Money” program.

A caller on the show asked why Reddit has remained range-bound and gradually drifted downward despite a long-term bullish outlook from many analysts.

Cramer responded directly: “Alright, my take is that this is a $29 billion company. I think that there are companies that would pay $40 billion for just the book of business they have and be able to train all their different viewers and readers.”

He closed his argument without hesitation, stating: “Buy Reddit, period, end of story. Buy Reddit.”

Reddit’s second-quarter financial results provide substantive backing for the growth thesis Cramer outlined on air.

Revenue rose 61% year over year to $805 million, advertising revenue increased 64% to $762 million, and adjusted EBITDA more than doubled to $343 million in the quarter.

Daily active uniques increased 18% to 130.3 million, while weekly active uniques rose 24% to 514.6 million during the same period.

The company also issued third-quarter guidance of $860 million to $870 million in revenue and adjusted EBITDA of $385 million to $395 million.

At the September 8 Goldman Sachs Communacopia + Technology Conference, CEO Steve Huffman said, “What is most valuable to Reddit is bringing users into the Reddit ecosystem. We want to grow our direct user base. That is where our business lives.”

Huffman also discussed ongoing efforts to convert mobile-web users into app users, which the company views as a central part of its monetization strategy going forward.

Despite the bullish headline numbers, the composition of Reddit’s user growth presents a meaningful risk that investors should weigh carefully.

U.S. daily active uniques rose only 6% year over year to 53.2 million, while logged-in U.S. daily active uniques grew just 1% to 23.1 million in the second quarter.

International daily active uniques grew much faster at 28%, reaching 77.1 million, though average revenue per unique internationally was just $2.26 compared with $11.85 in the U.S.

Huffman acknowledged the disparity, noting that “traffic that is logged out or transient is just less meaningful to us,” reinforcing the company’s focus on direct, engaged users.

On the product side, Huffman admitted the company considers its feed technology roughly 12 to 18 months behind the state of the art, making feed improvement a top priority.

Reddit closed at $152.83 on September 17, giving it a market capitalization of approximately $29.4 billion, with a forward price-to-earnings ratio of 23.31 as of that date.

That valuation leaves the stock with limited room for error if growth rates decelerate or monetization of international users fails to accelerate meaningfully.

Institutional interest in the stock has grown considerably, with 91 hedge funds holding Reddit at the end of the second quarter, up from 70 in the first quarter, according to Insider Monkey.

Jericho Capital Asset Management was among the largest shareholders after initiating a new position in the second quarter with 3.33 million shares in the company.

Short interest remained elevated at roughly 14% to 15% of the float, reflecting continued skepticism among some investors about Reddit’s ability to sustain its growth trajectory at current valuations.