Jim Cramer Says WallStreetBets Should Target This Company's Stock

CNBC host Jim Cramer said that “Apes” — a nickname for retail investors who are part of the Reddit group r/WallStreetBets — should target consumer lending platform Upstart Holdings Inc. UPST as it is “really good.”

What Happened: Cramer said on CNBC’s “Mad Money Lightning Round” that he did not understand the short position in Upstart.

“Why don’t the meme people, the Apesters, whatever the heck they are [and] call themselves, go after that company because it is really good. Artificial intelligence lending,” Cramer said.

See Also: Is This The Calm Before The Storm For Upstart's Stock?

Why It Matters: Upstart’s AI lending platform partners with banks to provide affordable credit. Founded by ex-exployees at Alphabet Inc. GOOGLGOOG, the company claims its AI-powered lending model can provide banks with up to 75% fewer defaults at the same approval rate.

Upstart’s shares are currently down more than 37% from the all-time high of $191.89 reached on June 4.

The company has a small float at just 45.63 million shares and 19.73% of its total float is held short, according to the latest data from Yahoo! Finance.

In May, Upstart reported a 90% year-over-year surge in revenue for the first quarter to $121.3 million, while net income rose to $10.1 million or $0.11 per share from $1.5 million or breakeven per share in the year-ago period.

Price Action: Upstart Holdings shares closed 2% higher in Thursday’s regular trading session at $119.75 and further rose 1.3% in the after-hours session to $121.33.

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