• CNBC's Jim Cramer told investors not to get greedy and instead take profits in stocks that have run up substantially, including recent IPOs.
• "If you're in one of these IPOs that's doubled or tripled or quadrupled, why not sell some of your position, so you're playing with the house's money?" he asked. "Remember, all of these gains are purely on paper until you ring the darned register."

CNBC's Jim Cramer told investors not to get greedy and instead take profits in stocks that have run up substantially — especially recent IPOs like Reddit whose valuation is starting to feel "a little excessive."

"I'm begging you to remain grounded in this environment of incredible exuberance," he said. "If you're in one of these IPOs that's doubled or tripled or quadrupled, why not sell some of your position, so you're playing with the house's money? Remember, all of these gains are purely on paper until you ring the darned register."

Reddit stock is up more than 200% since it reported its first post-IPO quarter in May. Cramer said he's a big fan of the company, especially because he thinks it has a unique place in the digital advertising landscape. But he said it's difficult to justify this high valuation, even as some investors may argue the stock deserves a premium. However it's not just Reddit who's reaching meteoric heights, he added, suggesting that many of the best-performing IPOs of the year have scarcity value because there's a dearth of new companies on the market.

It's currently difficult for companies to go public, because they can raise as much capital as they need privately without having to endure mass scrutiny from Wall Street, Cramer continued. He listed several other recent IPOs whose stocks have run up this year, including LandBridge, Astera Labs, Loar and American Healthcare REIT.

According to Cramer, people will start to sell top IPOs when more begin to debut on the market, with investors trying to raise money for the next big deal. However, he continued, it seems a new IPO cycle is not going to hit Wall Street anytime soon.

"Yes, there's a good chance that you won't make as much money because of what I'm saying," Cramer said. "But there's also a good chance that you'll have no regrets if the market ever takes a big hit and these red-hots cool down dramatically."

Reddit did not immediately respond to request for comment.

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