RDDT - Reddit

If stock breaks below $166, expect further downside; had a nasty drop of over 8% at close.

Strong growth rates (70%+), low ARPU compared to peers, new product features and Shopify collaboration, deal with Google likely to be renegotiated higher.

Host states he is extremely bullish on Reddit and thinks it will do very well, though he hasn't added to his position recently.

Host states he is extremely bullish on Reddit and thinks it will do very well, though he hasn't added to his position recently.

Creator cites 70%+ revenue growth, 91.5% gross margin, $311M free cash flow last quarter, international expansion (30+ languages), growing ARPU (5-4x increases), forward FCF ratio of only 22x, and consistent positive EPS surprises vs Wall Street expectations.

Host likes Reddit's growth rate compared to peers, noting monetization per active customer is less than one-third of Meta's while user growth is faster. Sees significant upside in advertising revenue potential.

One host mentions buying Reddit during the week, seeing it as cheap. However, they note it needs to get back to the $150s to be 'dirt cheap.'

Bullish on growing user base, advertising growth, and new AI data licensing business model. Reddit's authentic human content is increasingly valuable for AI pre-training, post-training, and grounding. CEO stated Reddit is the number one cited source across LLMs.

One host calls Reddit a great business with an amazing valuation. They dismiss bear cases as being politically motivated rather than fundamental.

Host likes both Meta and Reddit. Both getting hurt in current market. Questions how people are treating advertising companies so poorly. Humans are buyers of products and will spend more time on social media if laid off. Next trillion-dollar industry will be selling to agents.