On CNBC's “Mad Money Lightning Round,” Jim Cramer said he likes Reddit, Inc. (NYSE:RDDT). The social media company is a unique property, but it is recommended not to buy it all at once as it sells at 29 times earnings.



“Buy Reddit very slowly, not aggressively,” he added.



As per the recent news, Reddit rolled out new app advertising tools, Max campaigns for app ads, App Event Optimization moving to general availability, and early beta testing for Dual Attribution. Last week, traders reacted positively to Reddit’s new app advertising tools, which aim to automate campaign management and improve CPA performance.



Starwood Property Trust, Inc. (NYSE: STWD has not been a good stock, Cramer said.



UBS analyst Marissa Lobo, on June 2, upgraded Starwood Property Trust from Neutral to Buy and raised the price target from $19.5 to $20.



Cramer said Ralliant Corporation (NYSE:RAL) is a “good company, but it has gone parabolic.”



On the earnings front, Ralliant, on May 12, reported better-than-expected first-quarter financial results and raised its FY2026 adjusted EPS and FY2026 sales guidance above estimates.



When asked about Blue Owl Capital Corporation (NYSE:OBDC), he said, “I have not recommended anyone's business development company. I can't start doing it now.”



Blue Owl Capital, on May 6, posted weaker-than-expected results for the first quarter.



BorgWarner Inc (NYSE:BWA) has been an “absolute winner, but again it's another parabola stock,” Cramer noted.



Wells Fargo analyst Colin Langan, on June 2, maintained BorgWarner with an Overweight rating and raised the price target from $68 to $83.



<h2>Price Action</h2>



<ul>
<li>Starwood Property Trust shares fell 0.2% to settle at $17.05 on Friday.</li>



<li>Ralliant shares dipped 3.6% to close at $60.17.</li>



<li>Borgwarner shares fell 5.7% to close at $72.63 on Friday.</li>



<li>Blue Owl Capital shares slipped 2.5% to settle at $11.02.</li>



<li>Reddit shares fell 5.7% to settle at $173.45.</li>
</ul>



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Photo via Shutterstock

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Jim Cramer advises buying Reddit slowly due to its high valuation, despite positive app ad tool news. He notes UBS upgraded Starwood Property Trust but the stock fell. Cramer labeled Ralliant and BorgWarner as 'parabolic' winners, warning against chasing them, while declining to recommend Blue Owl Capital after weak earnings.

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Ralliant

Starwood Property Trust

BorgWarner

Blue Owl Capital

GraniteShares 2x Long RDDT Daily ETF

UBS Group AG

Wells Fargo

Dow Jones Industrial Average

S&P 500

RALLIANT CORP

Blue Owl Capital III

Blue Owl Tech Finance

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WELLS FARGO & COMPANY 7.5% PERP CONV PRF CLS 'A' SERIES 'L'

WELLS FARGO & COMPANY DEP SHS REP 1/1000 INT PER PFD SER Y A

WELLS FARGO & COMPANY DP SHS REP 1/1000TH INT NCUM PFD CL A CC

WELLS FARGO & COMPANY 4.75% DEP SHS 1/1000 NCUM PFD CL A SR Z

WELLS FARGO & COMPANY DEP SHS REP 1/1000TH INT PFD SR AA (CLA)

Cramer's Lightning Round: Buy Reddit Slowly, Avoid Chasing 'Parabolic' Winners