Robinhood (HOOD) - Get Robinhood Report stock continued Tuesday's move higher, surging over 30% to $61.24 as of early intraday trading Wednesday.
Jim Cramer attributed the move to the Reddit trader, citing selling in GameStop (GME) - Get GameStop Corp. Class A Report and AMC (AMC) - Get AMC Entertainment Holdings, Inc. Class A Report
Cramer has lauded the company for revolutionizing investing for the retail investor and has become increasingly positive on the stock.
"I know, Robinhood isn't of the highest quality. But I endorse it as a stock for what it can become, not what it is now, and that's why I think it is roaring," Cramer wrote in a recent column on Real Money.
Jim Cramer told Action Alerts PLUS senior analyst Jeff Marks that he has been a believer in Robinhood since he met CEO Vlad Tenev in 2015.
"I have been in favor of Robinhood since these people [Robinhood users] were born," Cramer said.
However, Cramer said that investors who bought into Robinhood's initial public offering should consider selling some of their positions Wednesday.
"If you got some of the deal, I would sell half and let the other half run," Cramer said. "I want them [Robinhood users] to make it so they play with the house's money."
Cramer concluded by saying that selling a portion of a stock does not signify a lack of conviction in Robinhood's future.
"By selling a little by no means signifies I have a lack of belief," Cramer said.
For those looking for more on Cramer's trading mentality, check out what he had to say about Action Alerts PLUS holding Advanced Micro Devices (AMD) - Get Advanced Micro Devices, Inc. Report in Wednesday's Daily Rundown.
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