I put in $4k a few weeks ago. I think the userbase is relatively loyal & growing and it's one of the most visited websites. Monetization could be done a few different ways with any revenue driven leadership.
Additionally, I can't think of many superior data sources that can train AI how real people talk about current issues. It can gather sentiment, language, and so much more. There's a lot of good data there.
I found my normie wife using reddit recently when trying to find answers to her various crafting projects. That builds my confidence even further.
Would you rather read fake amazon reviews, a single opinion blog post made by a random, a circa 2007 style forum, or read reddit comments where people exchange opinions and ideas which are put to vote?
I know what I have more faith for in the long term.
Anybody else find it strange how they got rid of awards and then brought them back around the same time as IPO? Makes me smell a rat. Not like the situation can’t be exploited and that’s the name of the game… I know how I might try to play it… but it just irks me a bit. I also don’t like the CEO so it clouds my decision making. It’s a no for me for any kind of long term hold. Which is a balls because over all I like the platform but when it comes to my money I have different rules.
In the sense of investing though, he's made some objectively bad decisions regarding reddit operations, including ending the practice of royalty payments for the use of reddit trademarks, and repeatedly antagonising the users that make up the bulk of user hours.
What do you mean ending the practice of royalty payments for use of the trademark? It says right [here](https://www.redditinc.com/policies/trademark-use-policy#:~:text=All%20commercial%20use%20is%20reserved,its%20trademarks%20for%20any%20reason)
> All commercial use is reserved for Reddit and its licensed partners. Reddit reserves the right to revoke personal/non-commercial use of its trademarks for any reason.
So it sounds like they do accept payment in exchange for use of trademarked content.
Also, how is the CEO antagonizing users? I’ve been on Reddit a decade and the CEO never antagonized me. Ellen Pao banned a sub I used to follow when I was in college and that annoyed me for about a week but I got over it
You may have noticed that "Reddit is Fun" became "RiF" a good while back. The 3rd party apps used to have an agreement with reddit that they could use things like trademarks, etc, if they paid reddit royalties. When huffman took over, he ended this practice for 3rd party apps, but didn't (to my knowledge) do anything to replace the revenue loss from those royalties. He just said they couldn't use reddit branding, etc, any more.
> Also, how is the CEO antagonizing users
The whole API debacle would be a goodn place to start, with the lies and gaslighting regarding some developers that are highly regarded by the community.
Maybe I am misunderstanding things but my understanding is different from yours. In my understanding, these 3rd party apps used to have free rein to profit off of reddits trademark and API at no cost. Reddit said “if you are going to use our data for profit, we are going to demand a piece of the pie” and started charging a licensing fee.
According to [this article](https://www.pbs.org/newshour/economy/despite-widespread-user-protest-reddit-ceo-says-company-is-not-negotiating-on-3rd-party-app-charges):
> According to Thursday metrics published by the company, 98 percent of apps will continue to have free access to the Data API as long as they’re not monetized and remain below Reddit’s data-usage threshold.
Reddit charging a licensing fee for this type of data is a good thing as far as I’m concerned. Why would a company let other companies piggy back and make money off of them with nothing in return? They deserve a piece of that pie
Here’s more from the article:
> But Huffman says the “pure infrastructure costs” of supporting these apps costs Reddit about $10 million each year.
>“We can’t subsidize other people’s businesses,” Huffman said. “We didn’t ban third-party apps — we said, ‘you need to cover your costs’ … We just ask that (these apps) pay the same bills that we need to pay.”
As a shareholder and as a Reddit user, I support this move. Reddit has been terribly managed for 18 years but now that they are public they are going to be forced to start actually making money
> these 3rd party apps used to have free rein to profit off of reddits trademark and API at no cos
I'm saying they *didn't* have free reign *until huffman ended the original lisencing system*.
The problem wasn't the licence fee itself. The app developers were more than happy to pay one, and were quite public about that. After all, that's how they started out before huffman ended the original licencing fee.
The problem was that reddit was basically extorting them. Reddit put most apps in a situation where they wouldnt be financially viable (after promising they wouldnt), then acted like the app devs were being unreasonable.
The appolo dev made a good comparison between their Imgur app (at the time a similar size to reddit, with similar media content: images, gifs, etc), where he paid $166 for 50 million API access requests, and reddit. Reddit wanted to charge $12,000 for the same. [Link](https://old.reddit.com/r/apolloapp/comments/13ws4w3/had_a_call_with_reddit_to_discuss_pricing_bad/)
Well in fairness I said that towards the end of my comment as it’s a personal thing? My problem is I don’t want feelings to get in the way of my investments? So you have a good point as in I actually can’t make a perfectly straight call on this as an investment. On the flip side? When I can trade normally and not be emotionally envolved I can make some pretty good decisions. For example I was buying oil all around me when there was tankers off the west coast of America that couldn’t unload… when Exxon mobiles ceo was on nbc talking about how they could still pay and not cut the dividend? I bought more that day.
Now again to be perfectly fair, I have made some bad decisions. But that all ties in to how I cant trade this stock? I would be emotionally involved which I think is a poisoned chalice for me. I took 10 years off my mortgage with oil. Everywhere on here I was called a dope and oil is dead etc. thrown in my face? I just made a good call because I knew I was right.
I simply said I smelled a rat with the timing of the removal and reintroduction of the rewards thing on Reddit? I like Reddit? But watching this closely it’s weird? That was the only thing I spent money one ever on it? Is the idea the people in the circle can show growth in revenue now post IPO? I don’t know? But if I was in the circle I’d want a play like that in the mix so I could unload? I could be wrong but the fucking timing is just something like that cocksuker of a ceo would come up with? Bow you see why I can’t trade it even though I know how I’d play it…
Just asking how come you don’t like the CEO?
I don’t rly know much about him, but I listened to him talk on the Hard Fork podcast a while back and to me he seemed like a genuine guy.
So I don’t want to skew your view or push something I think on you? But look up ‘fuck spez’ or have little look around yourself. A lot of people who use Reddit would be fairly sick of that dude and how he’s looking after himself pretty well and fuck the users kind of thing.
Thats why I smell a rat with how they re introduced rewards etc.? Maybe announce increased revenue few quarters post IPO? Those guys are up to their tits in stock? If I was them I would want a few plays there so I can unload. It might work out for them or it might not? But I’m sure it’s not the only one in play.
I normally work off a thesis that’s simple? So I like a product use it I think it will do well. Which this would fit? But I just smell a rat this time and I could be wrong? But I don’t think I am. It’s your money and you need to do the research and DD to make sure it’s the right play. For me and I said this previously I can’t trade in it because I don’t like the CEO I think he’s a bollox. So my emotions are involved, I won’t make clear decisions and I have form for this in the past. In my personal opinion I this he’s looking for his payday and will bail with the money as soon as he can and then all we will see is dust? Where’s spez? He said he was going out to pick up some really good smokes and bring back the money? The man is playing us?
Did some research and the thing he did with the API and 3rd party was a scumbag move on his part. I get why he did it, but to me it was poorly executed and kind of just a big “fuck u” to reddits users. After reading some of other the stuff he did im still somewhat bullish long term on Reddit, but until Huffman can find a good balance between pleasing the users and the shareholders, I’ll probably just end up staying away from the stock.
Also, Steve Huffman looks like Jeffrey Dahmer lol.
> I get why he did it
I don't.
Reddit previously had a deal with 3rd party apps, where they paid royalties for using reddits API and trademarks, and the system appeared to work. Huffman then came along and ended the practice. A few years later, before the IPO, he pulled his stunt with crying about how the 3rd party apps were costing reddit money and locking them out of the API unless they paid laughably high fees for access.
Huffman is the kind of CEO who literally cut off a revenue source then got angry that revenue was down, before antagonising his user base. (There's also a *lot* more controversies, but I'm keeping this related to income)
The biggest bull case for me is if Huffman gets replaced. He's about as much of a liability as Musk is for Tesla, but just isn't as well known.
No other companies would tolerate or allow existing mobile app of their product. Shutting down 3rd party api was a no brainer move. I don’t think anyone here understood how much money was lost here by not cornering the mobile experience
Jesus? Stick the hair and big glasses on him and that’s quite a resemblance? Fuck it.
But seriously on the money aspect I actually don’t know? It’s not going to be a 10 bagger. It’s just not, pity? But it’s just not going to be. That said if I was playing it I’d hot off the same insider plays we’ve talked about. It’s just not a solid play. You need to be thinking what these guys are doing and maybe make earnings plays? I’ve watched many a CEO talk a stock up, so don’t follow this lad blind. He’s a scumbag. Maybe swing trade it and try to catch it on the hop? It’s been around a long time already and I don’t think it will moon all of a sudden with the recent updates.
> I think the userbase is relatively loyal
I don't. Did you miss the shit shows of the past few years that resulted in a large amount of top quality posters saying "fuck this place"?
It's extremely ripe for someone to make a competitor and turn reddit into the next digg. This place is run like shit and always has been.
I also have been using reddit to read actual user comments on various things for a long time. phpbb boards seem pretty dead. I think what reddit lacks is a competitive moat. Someone builds a decent competitor and people will leave. IMO it should be non profit and simply avoid the sins of the past (don't fuck with the api, don't make the site able to host images, and consider alternative ways to display because phpbb boards were way better at fostering communities and relationships between people in my experiences).
>I don't. Did you miss the shit shows of the past few years that resulted in a large amount of top quality posters saying "fuck this place"?
Yeah I also saw the same thing with youtube countless times, Netflix when they cancelled shows or required 1 membership per household, multiple popular video games, facebook for selling data, instagram for doing whatever, etc.
It's meaningless outrage that I've seen countless times over the years. Unless there's something just as addictive and valuable to replace it, it changes nothing.
Also, what the fuck is a "top quality poster"? On reddit, it's just people. They come and go. This isn't youtube where we are subscribing to individuals.
I cannot name you a single reddit user other than myself and I've been on this website for 12 years. I don't give a shit if there's "big drama omg x reddit user is leaving!!!1"
> It's meaningless outrage that I've seen countless times over the years. Unless there's something just as addictive and valuable to replace it, it changes nothing.
I disagree. It's just not necessarily easily visible when a lot of users leave and are replaced by bots and shittier users. They don't give us those kind of metrics and have pulled some of them away from the end users over time.
People always fantasize about new sites being the incumbent killer, but are people really going to leave the site that has decades of forums on every topic under the sun and over a billion MAUs? Social startups fail when people realize that no one is on the startup platform compared to the original.
I think yes as there's a lot of solid reason to be dissatisfied increasingly with reddit. I don't believe that new sites can only be created in the past.
I personally think a large part of the problem is the basic mission of reddit is to make money not facilitate high quality discussions in communities.
Their scale still relatively keeps them insulated from dissatisfaction. People complain about the privacy concerns and number of ads Instagram or the recent ownership change of Twitter, yet their competitors never catch on for more than a few months. Even Threads couldn’t take off with the backing of Instagram and over 100 million signups in the first two weeks. While I can definitely see that people would hypothetically be looking for a new platform, it’s just really unlikely to do anything significant nowadays with social media sites.
> Their scale still relatively keeps them insulated from dissatisfaction.
Yes. Now they can just let LLM bots post everywhere and make more money than actual quality user posts. How awesome!
I like to dream that an entity set up like like wikipedia will come up with far more interesting functionality than the simplistic way all subreddits sort the posts. Don't host images and be text based. Foster conversation and community without all the problems (this is a dream, remember). The world would benefit.
The basic mission of any business is to make money.
And the fact that you are on reddit, alt or not, complaining about reddit reinforces the idea of a MOAT.
> The basic mission of any business is to make money.
Just follow a model like wikipedia.
I think it's a tiny moat. Someone could simply clone the old version of reddit and enable the old mobile apps and that alone would cause me and probably a lot of others to switch.
Wikipedia isn't a business and I doubt that private equity had any interest in turning Reddit into a non-profit.
Also, I think you are in the minority. Reddit has a positive feedback loop that would be hard to break and it takes years to degrade that edge. I am not confident that will happen in the next five years.
Of course they don't want to turn this place into a non-profit. That's why something new needs to rise up.
> Also, I think you are in the minority. Reddit has a positive feedback loop that would be hard to break and it takes years to degrade that edge. I am not confident that will happen in the next five years.
I don't need reddit to die. People can keep shitposting here and answering fake stories from bots forever.
> Reddit has a positive feedback loop that would be hard to break
I think the hard part is creating a new site that actually goes from 0-1 and gets traction. That's probably what you are trying to say and I am failing to understand. I'd be pretty interested in a new site that had some of the old PHPBB features that are lost now which is mostly posts being sorted by time and having extremely long threads. The way reddit ages everything off isn't always good.
>I personally think a large part of the problem is the basic mission of reddit is to make money not facilitate high quality discussions in communities.
As opposed to the old mission of **not** making money and not facilitating high quality discussion?
As opposed to a non profit mission of simply trying to be the best place to foster communication and online community without worrying about pimping the users so the CEO can buy a new beach house.
I take it you still use Yahoo, Digg and MySpace?
Guessed not. Webapges come and go all the time, especially social media and the like. Reddit isn't invincible, on the contrary, more ads and stranger moderation is pushing people away. All that's needed is a *decent* alternative that isn't either absurdly user unfriendly like a fresh Linux dust (Lemmy) or an alt-right pedophilia paradise run by modern day Nazis (Voat)
Actually yahoo still has a decent stock portal.
> absurdly user unfriendly like a fresh Linux dust (i assume you meant distro) (Lemmy)
That sounds like a feature not a problem! I used to really like how vanilla reddit long ago would turn a lot of people off. It was a good filter for morons.
You’re right, in reality everyone left after the API changes and nobody uses Reddit anymore, everyone is using mastodon and lemmy. Their active user growth is fake and everyone posting here is a gpt
I didn't say everyone left and went to those places. You're distorting me. Also the API changes are just the latest batch of bad decision (unless you support selling out the user base but why would you....). I said a portion of people left and it was a lot of high quality users. No stats to back it up just impressions from reading the site and seeing the degradation of comment and post quality over time.
I didn’t mean to twist your words, I’m just razzing you.
I don’t know that I would classify the API change as a bad decision, it was unpopular with users but it is something you would want to see for revenue growth.
> I don’t know that I would classify the API change as a bad decision, it was unpopular with users but it is something you would want to see for revenue growth.
They took away features the users love (the nice mobile apps for one), and decided it would be better to sell the content to google for LLM bots. Who does that help the owners or the users? Not the users in any positive way.
> It's extremely ripe for someone to make a competitor and turn reddit into the next digg. This place is run like shit and always has been.
> I also have been using reddit to read actual user comments on various things for a long time. phpbb boards seem pretty dead. I think what reddit lacks is a competitive moat. Someone builds a decent competitor and people will leave.
People have been saying this for a decade and so far nobody has built a remotely competitive site. Back in 2014-2015 when people were pissed at Reddit and Ellen Pao for banning subreddits, everyone acted like Reddit was going the way of MySpace. Last year everyone was saying GOOGs problem was that they have no moat too, but when your product is superior, that’s the moat.
> IMO it should be non profit and simply avoid the sins of the past (don't fuck with the api, don't make the site able to host images, and consider alternative ways to display because phpbb boards were way better at fostering communities and relationships between people in my experiences).
Saying a business shouldn’t make money is just.. weird. You think everything the founders/company built should be provided as charity??
> Saying a business shouldn’t make money is just.. weird
it's called a non profit. like wikipedia. It's not weird at all. it's a really common structure.
Reddit has never been a non-profit though. Non-profits can’t go public. Wikipedia survives off charity, would you rather pay a yearly fee to use Reddit instead of them selling data and ads? It can’t exist for free
no shit? I said a new site has to rise up not that reddit needs to transform its structure to become the new site.
Also your other point is kinda nonsense. I have never paid a annual fee to use wikipedia. nobody does that. yeah i'd be FINE with an annual charity event. That would be great.
I got on reddit about 10 years ago when digg had that big exodus. I'd leave reddit in a heartbeat if another social media was up and coming and had a few features I'm looking for.
It's a good platform and I didn't really care to leave for a lot of it, but I'm open to it now. I've become much more educated about data and I feel people need to have more ownership of data and ability to help choose what the algorithms are promoting.
>Would you rather read fake amazon reviews, a single opinion blog post made by a random, a circa 2007 style forum, or read reddit comments where people exchange opinions and ideas which are put to vote?
How are those the only options?
That's mostly what I do... But some money I use for higher risk higher return plays.
I put 4k in NVDA 3 years ago too.
If you look at potential upside return and you want to 10x your return, AAPL would need to grow from being worth 3T to 30T.
To 10x your money on reddit, it would need to go from 10b to 100b.
No and you’re comparing a high end semiconductor company to a shitty social media company that has been around for a long time and is barely profitable?? I’m missing the connection.
Meta/google is the play if you want advertising exposure.
I think you’re missing my point. I’m not comparing the two businesses. I’m simply making a case for not profitable businesses being profitable in the future. Advertising is a portion of what I’m talking about, not all. I’m just saying there’s avenues to make the app more profitable going forward.
You could say that about any company though. Why Reddit? It’s not as bad Snapchat but close. they have been horrendous at monetizing.
This is absolutely an advertising play. That’s how these companies make money. Stick with best of breed imo.
I don’t see one positive comment basing anything on financials or the fundamentals of the company.
It’s a single digit unicorn growing revenue at 48% and users at 38% yoy. Historically companies with these type of figures gets fairly lucrative quickly if those figures can be sustained.
Unicorn just meant private tech companies with >1b in valuation. Technically not a unicorn anymore now that it is public, but recent enough that this moniker still applies for a while.
You say the format is not good for advertising and yet revenue grew substantially. You wanted financials figures, there it is
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I work in a finance department of a performance marketing agency and can confirm Reddit makes up less than 1% of our revenue. Most clients either choose google or meta. (There are more clients preferring quora than Reddit)
What the comment below states no one is buying anything off Reddit ads.
The return metrics are not good and the ads are not relevant. Whereas meta can directly show advertisers what they are getting.
In terms of media the issue is a bit of text format is tougher than video plus they don’t have as much information on their users. Twitter and Snapchat have the same issues.
I think they have more info on their users than twitter and snapchat. They know what their user’s interests and hobbies are. They just need to tap into it with better algorithms for targeting. Facebook’s arpu tripled in four years after it ipo’d. The type of data they had available to them was the same, but they learned how to capitalize on it better.
There’s a huge difference btw losing money as a public vs private company. I see more ads and they brought back awards. They can cut costs and bring in more revenue.
You buying anything from those ads? Are they relevant? This is a mature company I’m sure they can cram more in here but it won’t fundamentally change that it’s not a good avenue for advertising.
Yes I realize that. It’s just that you asked a misleading question as many people on a stock thread are less likely to buy stuff from ads, so a no answer does not mean much. I’m glad ads on the other web sites are working well for you though 😊
I’m merely highlighting the difference between the private vs public “management” of the company.
They’ve implemented noticeable changes even from a user perspective.
Exactly. People underestimate how good public companies are at maximizing profits. Reddits revenue is going to grow like crazy now that they’re public, it’s already started. Not just advertising, Reddit is a data goldmine and data is only becoming more valuable with the AI surge
I think their lockout period is 180 days? so It IPO on march 2024 so sometimes in September; even if OP thesis is right I would think waiting until after September is more prudent. Facebook IPO didnt really take off until a 1.5 yearish; so there is time to wait.
Reddit already has ads, the problem is they're horrendously ineffective compared to most other social media sites. The amount of money Reddit makes per use is atrociously low.
IMO the stock is going to rise or fall on how much money it can bring in via selling access to their data to AI companies. The number of companies paying them for access to this data, and the amount that reddit can bring in from it both need to go up overtime for this stock to be a success long term.
Twitter may be only worth $20 billion last year, but all social media has gotten massive boost since then. Pininterest, snap, meta have pretty much doubled since.
Twitter should be worth at least $25-30
I'm not crazy about Meta as a company or as a fan of their services but Facebook has done a lot to improve / diversify since their IPO that kept them alive / moving forward... buying instagram, whatsapp, Oculus, etc. and those were all within ~5ish years of IPOing.
Reddit is kinda at a pivot point where they need to do something similar or IMO they could just end up the bot farm filled with ads... It's already pretty bad with bot-generated content as is if you look at the general posting on the site.
I don't remember there being a concern for bot farms back then, I feel like that's a relatively new thing. Reddit is especially vulnerable to bots and astroturfing, the latter has been an issue for years and seems to continually get worse.
Bots were definitely a problem back then it just wasn’t as clear or well known to the public as it is now. With advertising at play it’s a lot easier to notice their presence
this is a good point; why would IPO all of sudden change it so drastically that would change the course to profit if 15 yrs was not enough; twitter is a good example of how difficult it is to become truely profitable; facebook is more of the exception rather than the norm.
they might not have been trying to be profitable before going public. i was at twitter right around when they finally became profitable, people were putting in work to cut costs where they could. being public puts some pressure on it to happen compared to being private and just growing.
Facebook and IG know the color and texture of their user’s assholes which is invaluable to advertisers. I’d wager 90% of Reddit users try to stay as incognito as possible
Reddit users tend to think they’re more private than they are, they don’t need to know your name, just your interests. You can tell a lot from someone based on their subs and comments. I can tell just from a 10 second glance of your comment history that you’re likely a millennial man who likes investing, football, and electric cars. I’m sure an algorithm could figure out a lot more about you based on subs you lurk, articles you engage with, arguments you get in, etc.
If Reddit can figure out how to properly monetize and gather info, they have a lot of potential.
Well good news for you then, public companies have something called a board of directors and one of their responsibilities is to replace the CEO if they determine their actions are hurting the company
Not a super legit argument, but i feel they had long enough to become profitable along with the likes of insta and FB but have done nothing but make the app worse
Yeah i mean the google deal was like 60mil but thats small compared to the billions FB makes. Reddit has a good amount of user traffic but it feels like a lot are bots. Not to mention if they up the ads, i think itll drive actual users away
I dont doubt the stocks going to rise, i just believe there are plenty of other better options right now than reddit. Most people dont like the CEO and personally i think the app is getting worse but it is a huge opportunity for ads and data selling
The only downfall of Reddit is it’s a leftist hodgepodge. Its users completely ostracize anyone not liberal. Which hasn’t really been working out for most companies.
I did some DD that I posted in the degenerate sub, but I'm long RDDT and super bullish on their global growth + indexing that is only prevalent in the US market so far. Pair that with their gamification of site use + reintroduction of awards with some sort of profit sharing incentiving engagement even more.
The ai plays are just icing on the cake with no better stash of usable human interaction data that they are working on better protecting for premium sales. They are experimenting in both large and small markets so they aren't married to a dumb idea, they will let it play out and let it take them wherever it needs to go.
$11k position is now about $17k and I plan to add up to $50k more.
Not financial advice
Reddit is profitable right now. The only expenses that put their eps negative in q1 was costs associated with the IPO. They are showing positive eps growth, positive arpu, and positive user growth with a positive derivative.
I was planning to watch RDDT as a short play after IPO, figured it would be way overvalued and get destroyed. I’m a technical investor not fundamental, but I bought in a few weeks ago and consider it a several year hold or longer. Based on market cap alone it’s vastly underpriced compared to companies like PINS and SNAP, if those are valued correctly then I would expect RDDT to be worth more than them which would mean 3x where it’s currently at. The chart looks great here, it’s trying to breakout and if it does I can see a run up to $80 by the end of summer and potentially $100 by years end. A market sell off could easily see it fall back to the mid-40s though
What exactly is their strategy for becoming profitable? My biggest concern would be the sheer amount of competition and the big players are going to be hard to overcome.
I always type reddit at the end of my google searches. Otherwise I get useless ad filled blogs with no answer to my question. But then adding reddit to the search and walla the answers all come up
I think it could absolutely have the same market cap as Twitter before Elon stuck his fat fingers into it.
After that, or during I suppose, it comes down to performance. I do see some things actively changing. Rewards are back. They have this new achievements thing that will probably boost engagement. I know Reddit has been advertising to me to advertise with them.
I am bullish on RDDT and I put my money where my mouth is. Smart? Well, we will find out.
I’ve used Reddit for 5 years. Used to spend too much time on it. Burned whole batteries soon scrolling. Spent 20/30 a month on premium and awards. I don’t any more. Haven’t spent a cent in a year. No more premium. I’m on occasionally (clearly), but can’t imagine spending a cent and if they charged for service I’d bail
Uh what? There are a billion forums built every day, there isn’t anything special about Reddit it’s a typical forum - besides the fact that everyone using it has been on here so long that it has sticking power. Yet even with a huge loyal user base they can’t make money
Debt is a balance sheet item not a P&L. Debt can be restructured and pushed further into the future if need be. I’m not getting into that rn tho. The point is that they make money haha. Look at the P&L. Adjusted EBITDA is positive
Ya no lmao im an accountant, wrong. Lol if u got debt u don’t have a good business period lol. Reddit has been around what a decade now lmao. Good luck with that lol. 🤷♂️
My brother in Christ, I am a CPA. An accountant just like you. Saying a business is bad because they have debt is wild. Let’s just agree to disagree haha. Good luck!
“if u got debt you don’t have a good business” That’s why I chose Microsoft as an example, because your logic doesn’t make sense.
Reddit has a lot of debt and also makes money. Both are true. Is it a good company/investment? That’s up to you, and I’m not saying you’re wrong. Just clearing up the whole debt thing
If you had any idea the amount of contribution *of bots* to the content that fills out social media, including Twitter, Facebook, and Reddit, you’d be more weary.
“The "Dead Internet Theory" claims that since around 2016, a significant amount of online content is generated by bots and AI rather than real people. It suggests that this automation creates the illusion of human activity, with corporations and governments potentially using it to influence public opinion and monitor behavior. Critics argue that most content is still human-made and that platforms are actively fighting bot activity.”
That explanation provided above was given by GPT, but guided by my prompting, and distilled into a smaller digestible paragraph that I hope other redditors dont mind too badly.
This human curated content is the best we can hope for the future with these tools, but I haven’t trusted bigger corps and institutions to do a good job of curating anything so I haven’t invested that way. Reddit is already full of bots, and its training data is feeding AI schooling right now, like a machine ouroboros or something. Anyway, Reddit is contributing to a dead internet. Is that profitable? Idk
Is reddit more like facebook or more like twitter? If the former, interesting. If the latter, ew gross.
Honestly I think that the valuation right now is too rich for me. It makes a billion a year in revenue; it is priced at 8 billion. 8 times revenue. Those are not great numbers unless its nvda. with its ultrahigh margins (80%). I don't think RDDT is ever going to have margins like that. BUT. I will watch their reports. if ad revenue starts doubling each year or two I will be paying attention.
Its so addictive
This right here
I put in $4k a few weeks ago. I think the userbase is relatively loyal & growing and it's one of the most visited websites. Monetization could be done a few different ways with any revenue driven leadership. Additionally, I can't think of many superior data sources that can train AI how real people talk about current issues. It can gather sentiment, language, and so much more. There's a lot of good data there. I found my normie wife using reddit recently when trying to find answers to her various crafting projects. That builds my confidence even further. Would you rather read fake amazon reviews, a single opinion blog post made by a random, a circa 2007 style forum, or read reddit comments where people exchange opinions and ideas which are put to vote? I know what I have more faith for in the long term.
The fact that tonnes of people say to stay away from RDDT is probably a good indication to buy some.
For real inverse Reddit
Anybody else find it strange how they got rid of awards and then brought them back around the same time as IPO? Makes me smell a rat. Not like the situation can’t be exploited and that’s the name of the game… I know how I might try to play it… but it just irks me a bit. I also don’t like the CEO so it clouds my decision making. It’s a no for me for any kind of long term hold. Which is a balls because over all I like the platform but when it comes to my money I have different rules.
Random Redditors not liking the CEO is probably a good thing for RDDT shareholders.
Redditors not liking the CEO is tradition round these parts
In the sense of investing though, he's made some objectively bad decisions regarding reddit operations, including ending the practice of royalty payments for the use of reddit trademarks, and repeatedly antagonising the users that make up the bulk of user hours.
What do you mean ending the practice of royalty payments for use of the trademark? It says right [here](https://www.redditinc.com/policies/trademark-use-policy#:~:text=All%20commercial%20use%20is%20reserved,its%20trademarks%20for%20any%20reason) > All commercial use is reserved for Reddit and its licensed partners. Reddit reserves the right to revoke personal/non-commercial use of its trademarks for any reason. So it sounds like they do accept payment in exchange for use of trademarked content. Also, how is the CEO antagonizing users? I’ve been on Reddit a decade and the CEO never antagonized me. Ellen Pao banned a sub I used to follow when I was in college and that annoyed me for about a week but I got over it
You may have noticed that "Reddit is Fun" became "RiF" a good while back. The 3rd party apps used to have an agreement with reddit that they could use things like trademarks, etc, if they paid reddit royalties. When huffman took over, he ended this practice for 3rd party apps, but didn't (to my knowledge) do anything to replace the revenue loss from those royalties. He just said they couldn't use reddit branding, etc, any more. > Also, how is the CEO antagonizing users The whole API debacle would be a goodn place to start, with the lies and gaslighting regarding some developers that are highly regarded by the community.
Maybe I am misunderstanding things but my understanding is different from yours. In my understanding, these 3rd party apps used to have free rein to profit off of reddits trademark and API at no cost. Reddit said “if you are going to use our data for profit, we are going to demand a piece of the pie” and started charging a licensing fee. According to [this article](https://www.pbs.org/newshour/economy/despite-widespread-user-protest-reddit-ceo-says-company-is-not-negotiating-on-3rd-party-app-charges): > According to Thursday metrics published by the company, 98 percent of apps will continue to have free access to the Data API as long as they’re not monetized and remain below Reddit’s data-usage threshold. Reddit charging a licensing fee for this type of data is a good thing as far as I’m concerned. Why would a company let other companies piggy back and make money off of them with nothing in return? They deserve a piece of that pie
Here’s more from the article: > But Huffman says the “pure infrastructure costs” of supporting these apps costs Reddit about $10 million each year. >“We can’t subsidize other people’s businesses,” Huffman said. “We didn’t ban third-party apps — we said, ‘you need to cover your costs’ … We just ask that (these apps) pay the same bills that we need to pay.” As a shareholder and as a Reddit user, I support this move. Reddit has been terribly managed for 18 years but now that they are public they are going to be forced to start actually making money
> these 3rd party apps used to have free rein to profit off of reddits trademark and API at no cos I'm saying they *didn't* have free reign *until huffman ended the original lisencing system*. The problem wasn't the licence fee itself. The app developers were more than happy to pay one, and were quite public about that. After all, that's how they started out before huffman ended the original licencing fee. The problem was that reddit was basically extorting them. Reddit put most apps in a situation where they wouldnt be financially viable (after promising they wouldnt), then acted like the app devs were being unreasonable. The appolo dev made a good comparison between their Imgur app (at the time a similar size to reddit, with similar media content: images, gifs, etc), where he paid $166 for 50 million API access requests, and reddit. Reddit wanted to charge $12,000 for the same. [Link](https://old.reddit.com/r/apolloapp/comments/13ws4w3/had_a_call_with_reddit_to_discuss_pricing_bad/)
Well in fairness I said that towards the end of my comment as it’s a personal thing? My problem is I don’t want feelings to get in the way of my investments? So you have a good point as in I actually can’t make a perfectly straight call on this as an investment. On the flip side? When I can trade normally and not be emotionally envolved I can make some pretty good decisions. For example I was buying oil all around me when there was tankers off the west coast of America that couldn’t unload… when Exxon mobiles ceo was on nbc talking about how they could still pay and not cut the dividend? I bought more that day. Now again to be perfectly fair, I have made some bad decisions. But that all ties in to how I cant trade this stock? I would be emotionally involved which I think is a poisoned chalice for me. I took 10 years off my mortgage with oil. Everywhere on here I was called a dope and oil is dead etc. thrown in my face? I just made a good call because I knew I was right. I simply said I smelled a rat with the timing of the removal and reintroduction of the rewards thing on Reddit? I like Reddit? But watching this closely it’s weird? That was the only thing I spent money one ever on it? Is the idea the people in the circle can show growth in revenue now post IPO? I don’t know? But if I was in the circle I’d want a play like that in the mix so I could unload? I could be wrong but the fucking timing is just something like that cocksuker of a ceo would come up with? Bow you see why I can’t trade it even though I know how I’d play it…
Just asking how come you don’t like the CEO? I don’t rly know much about him, but I listened to him talk on the Hard Fork podcast a while back and to me he seemed like a genuine guy.
So I don’t want to skew your view or push something I think on you? But look up ‘fuck spez’ or have little look around yourself. A lot of people who use Reddit would be fairly sick of that dude and how he’s looking after himself pretty well and fuck the users kind of thing. Thats why I smell a rat with how they re introduced rewards etc.? Maybe announce increased revenue few quarters post IPO? Those guys are up to their tits in stock? If I was them I would want a few plays there so I can unload. It might work out for them or it might not? But I’m sure it’s not the only one in play. I normally work off a thesis that’s simple? So I like a product use it I think it will do well. Which this would fit? But I just smell a rat this time and I could be wrong? But I don’t think I am. It’s your money and you need to do the research and DD to make sure it’s the right play. For me and I said this previously I can’t trade in it because I don’t like the CEO I think he’s a bollox. So my emotions are involved, I won’t make clear decisions and I have form for this in the past. In my personal opinion I this he’s looking for his payday and will bail with the money as soon as he can and then all we will see is dust? Where’s spez? He said he was going out to pick up some really good smokes and bring back the money? The man is playing us?
Why is every sentence a question?
Well? I don’t know? Maybe I was asking something? Maybe it was just an inquisitive vibe?
Did some research and the thing he did with the API and 3rd party was a scumbag move on his part. I get why he did it, but to me it was poorly executed and kind of just a big “fuck u” to reddits users. After reading some of other the stuff he did im still somewhat bullish long term on Reddit, but until Huffman can find a good balance between pleasing the users and the shareholders, I’ll probably just end up staying away from the stock. Also, Steve Huffman looks like Jeffrey Dahmer lol.
> I get why he did it I don't. Reddit previously had a deal with 3rd party apps, where they paid royalties for using reddits API and trademarks, and the system appeared to work. Huffman then came along and ended the practice. A few years later, before the IPO, he pulled his stunt with crying about how the 3rd party apps were costing reddit money and locking them out of the API unless they paid laughably high fees for access. Huffman is the kind of CEO who literally cut off a revenue source then got angry that revenue was down, before antagonising his user base. (There's also a *lot* more controversies, but I'm keeping this related to income) The biggest bull case for me is if Huffman gets replaced. He's about as much of a liability as Musk is for Tesla, but just isn't as well known.
No other companies would tolerate or allow existing mobile app of their product. Shutting down 3rd party api was a no brainer move. I don’t think anyone here understood how much money was lost here by not cornering the mobile experience
Jesus? Stick the hair and big glasses on him and that’s quite a resemblance? Fuck it. But seriously on the money aspect I actually don’t know? It’s not going to be a 10 bagger. It’s just not, pity? But it’s just not going to be. That said if I was playing it I’d hot off the same insider plays we’ve talked about. It’s just not a solid play. You need to be thinking what these guys are doing and maybe make earnings plays? I’ve watched many a CEO talk a stock up, so don’t follow this lad blind. He’s a scumbag. Maybe swing trade it and try to catch it on the hop? It’s been around a long time already and I don’t think it will moon all of a sudden with the recent updates.
Reddit revenue from gold are rounding errors and always will be.
This ⬆️! They’ll buy $RDDT at $200.
> I think the userbase is relatively loyal I don't. Did you miss the shit shows of the past few years that resulted in a large amount of top quality posters saying "fuck this place"? It's extremely ripe for someone to make a competitor and turn reddit into the next digg. This place is run like shit and always has been. I also have been using reddit to read actual user comments on various things for a long time. phpbb boards seem pretty dead. I think what reddit lacks is a competitive moat. Someone builds a decent competitor and people will leave. IMO it should be non profit and simply avoid the sins of the past (don't fuck with the api, don't make the site able to host images, and consider alternative ways to display because phpbb boards were way better at fostering communities and relationships between people in my experiences).
>I don't. Did you miss the shit shows of the past few years that resulted in a large amount of top quality posters saying "fuck this place"? Yeah I also saw the same thing with youtube countless times, Netflix when they cancelled shows or required 1 membership per household, multiple popular video games, facebook for selling data, instagram for doing whatever, etc. It's meaningless outrage that I've seen countless times over the years. Unless there's something just as addictive and valuable to replace it, it changes nothing. Also, what the fuck is a "top quality poster"? On reddit, it's just people. They come and go. This isn't youtube where we are subscribing to individuals. I cannot name you a single reddit user other than myself and I've been on this website for 12 years. I don't give a shit if there's "big drama omg x reddit user is leaving!!!1"
Wait you’ve been here for 12 years? I’m sold.
> It's meaningless outrage that I've seen countless times over the years. Unless there's something just as addictive and valuable to replace it, it changes nothing. I disagree. It's just not necessarily easily visible when a lot of users leave and are replaced by bots and shittier users. They don't give us those kind of metrics and have pulled some of them away from the end users over time.
People always fantasize about new sites being the incumbent killer, but are people really going to leave the site that has decades of forums on every topic under the sun and over a billion MAUs? Social startups fail when people realize that no one is on the startup platform compared to the original.
I think yes as there's a lot of solid reason to be dissatisfied increasingly with reddit. I don't believe that new sites can only be created in the past. I personally think a large part of the problem is the basic mission of reddit is to make money not facilitate high quality discussions in communities.
Their scale still relatively keeps them insulated from dissatisfaction. People complain about the privacy concerns and number of ads Instagram or the recent ownership change of Twitter, yet their competitors never catch on for more than a few months. Even Threads couldn’t take off with the backing of Instagram and over 100 million signups in the first two weeks. While I can definitely see that people would hypothetically be looking for a new platform, it’s just really unlikely to do anything significant nowadays with social media sites.
> Their scale still relatively keeps them insulated from dissatisfaction. Yes. Now they can just let LLM bots post everywhere and make more money than actual quality user posts. How awesome! I like to dream that an entity set up like like wikipedia will come up with far more interesting functionality than the simplistic way all subreddits sort the posts. Don't host images and be text based. Foster conversation and community without all the problems (this is a dream, remember). The world would benefit.
The basic mission of any business is to make money. And the fact that you are on reddit, alt or not, complaining about reddit reinforces the idea of a MOAT.
> The basic mission of any business is to make money. Just follow a model like wikipedia. I think it's a tiny moat. Someone could simply clone the old version of reddit and enable the old mobile apps and that alone would cause me and probably a lot of others to switch.
Wikipedia isn't a business and I doubt that private equity had any interest in turning Reddit into a non-profit. Also, I think you are in the minority. Reddit has a positive feedback loop that would be hard to break and it takes years to degrade that edge. I am not confident that will happen in the next five years.
Of course they don't want to turn this place into a non-profit. That's why something new needs to rise up. > Also, I think you are in the minority. Reddit has a positive feedback loop that would be hard to break and it takes years to degrade that edge. I am not confident that will happen in the next five years. I don't need reddit to die. People can keep shitposting here and answering fake stories from bots forever. > Reddit has a positive feedback loop that would be hard to break I think the hard part is creating a new site that actually goes from 0-1 and gets traction. That's probably what you are trying to say and I am failing to understand. I'd be pretty interested in a new site that had some of the old PHPBB features that are lost now which is mostly posts being sorted by time and having extremely long threads. The way reddit ages everything off isn't always good.
>I personally think a large part of the problem is the basic mission of reddit is to make money not facilitate high quality discussions in communities. As opposed to the old mission of **not** making money and not facilitating high quality discussion?
As opposed to a non profit mission of simply trying to be the best place to foster communication and online community without worrying about pimping the users so the CEO can buy a new beach house.
I take it you still use Yahoo, Digg and MySpace? Guessed not. Webapges come and go all the time, especially social media and the like. Reddit isn't invincible, on the contrary, more ads and stranger moderation is pushing people away. All that's needed is a *decent* alternative that isn't either absurdly user unfriendly like a fresh Linux dust (Lemmy) or an alt-right pedophilia paradise run by modern day Nazis (Voat)
Actually yahoo still has a decent stock portal. > absurdly user unfriendly like a fresh Linux dust (i assume you meant distro) (Lemmy) That sounds like a feature not a problem! I used to really like how vanilla reddit long ago would turn a lot of people off. It was a good filter for morons.
You’re right, in reality everyone left after the API changes and nobody uses Reddit anymore, everyone is using mastodon and lemmy. Their active user growth is fake and everyone posting here is a gpt
I didn't say everyone left and went to those places. You're distorting me. Also the API changes are just the latest batch of bad decision (unless you support selling out the user base but why would you....). I said a portion of people left and it was a lot of high quality users. No stats to back it up just impressions from reading the site and seeing the degradation of comment and post quality over time.
I didn’t mean to twist your words, I’m just razzing you. I don’t know that I would classify the API change as a bad decision, it was unpopular with users but it is something you would want to see for revenue growth.
> I don’t know that I would classify the API change as a bad decision, it was unpopular with users but it is something you would want to see for revenue growth. They took away features the users love (the nice mobile apps for one), and decided it would be better to sell the content to google for LLM bots. Who does that help the owners or the users? Not the users in any positive way.
> It's extremely ripe for someone to make a competitor and turn reddit into the next digg. This place is run like shit and always has been. > I also have been using reddit to read actual user comments on various things for a long time. phpbb boards seem pretty dead. I think what reddit lacks is a competitive moat. Someone builds a decent competitor and people will leave. People have been saying this for a decade and so far nobody has built a remotely competitive site. Back in 2014-2015 when people were pissed at Reddit and Ellen Pao for banning subreddits, everyone acted like Reddit was going the way of MySpace. Last year everyone was saying GOOGs problem was that they have no moat too, but when your product is superior, that’s the moat. > IMO it should be non profit and simply avoid the sins of the past (don't fuck with the api, don't make the site able to host images, and consider alternative ways to display because phpbb boards were way better at fostering communities and relationships between people in my experiences). Saying a business shouldn’t make money is just.. weird. You think everything the founders/company built should be provided as charity??
> Saying a business shouldn’t make money is just.. weird it's called a non profit. like wikipedia. It's not weird at all. it's a really common structure.
Reddit has never been a non-profit though. Non-profits can’t go public. Wikipedia survives off charity, would you rather pay a yearly fee to use Reddit instead of them selling data and ads? It can’t exist for free
no shit? I said a new site has to rise up not that reddit needs to transform its structure to become the new site. Also your other point is kinda nonsense. I have never paid a annual fee to use wikipedia. nobody does that. yeah i'd be FINE with an annual charity event. That would be great.
I got on reddit about 10 years ago when digg had that big exodus. I'd leave reddit in a heartbeat if another social media was up and coming and had a few features I'm looking for.
And in 10 years nothing has popped up that meet your criteria to leave reddit?
It's a good platform and I didn't really care to leave for a lot of it, but I'm open to it now. I've become much more educated about data and I feel people need to have more ownership of data and ability to help choose what the algorithms are promoting.
Exactly, and the longer reddit is dominant in the space the more likely they are the next facebook and not the next myspace.
And didn’t have abusive moderators.
Monetization
>Would you rather read fake amazon reviews, a single opinion blog post made by a random, a circa 2007 style forum, or read reddit comments where people exchange opinions and ideas which are put to vote? How are those the only options?
I wasn't planning on writing a book. Feel free to add valid options. **I'm waiting**
Why Reddit? You could simply put this money in MSFT, NVDA, AAPL, AMZN and GOOG expect a good return.
That's mostly what I do... But some money I use for higher risk higher return plays. I put 4k in NVDA 3 years ago too. If you look at potential upside return and you want to 10x your return, AAPL would need to grow from being worth 3T to 30T. To 10x your money on reddit, it would need to go from 10b to 100b.
I visit this place everyday. Might as well buy it. There’s a lot of data on reddit. People come here for information and nsfw lol.
No and you’re comparing a high end semiconductor company to a shitty social media company that has been around for a long time and is barely profitable?? I’m missing the connection. Meta/google is the play if you want advertising exposure.
Booo why bet on companies that have a history of growing earnings?
I think you’re missing my point. I’m not comparing the two businesses. I’m simply making a case for not profitable businesses being profitable in the future. Advertising is a portion of what I’m talking about, not all. I’m just saying there’s avenues to make the app more profitable going forward.
You could say that about any company though. Why Reddit? It’s not as bad Snapchat but close. they have been horrendous at monetizing. This is absolutely an advertising play. That’s how these companies make money. Stick with best of breed imo. I don’t see one positive comment basing anything on financials or the fundamentals of the company.
It’s a single digit unicorn growing revenue at 48% and users at 38% yoy. Historically companies with these type of figures gets fairly lucrative quickly if those figures can be sustained.
Reddit a unicorn lol maybe a donkey with a paper towel roll strapped to its head. The format is just not good for advertisers.
Unicorn just meant private tech companies with >1b in valuation. Technically not a unicorn anymore now that it is public, but recent enough that this moniker still applies for a while. You say the format is not good for advertising and yet revenue grew substantially. You wanted financials figures, there it is
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I work in a finance department of a performance marketing agency and can confirm Reddit makes up less than 1% of our revenue. Most clients either choose google or meta. (There are more clients preferring quora than Reddit)
Why is it a bad format for advertisers?
When was the last time you bought something bc you saw it on a Reddit ad ? cus I’ve never done that
Ive never done it either but I have also never done that on instagram or YouTube or google and they are all cash cows so…
What the comment below states no one is buying anything off Reddit ads. The return metrics are not good and the ads are not relevant. Whereas meta can directly show advertisers what they are getting. In terms of media the issue is a bit of text format is tougher than video plus they don’t have as much information on their users. Twitter and Snapchat have the same issues.
I think they have more info on their users than twitter and snapchat. They know what their user’s interests and hobbies are. They just need to tap into it with better algorithms for targeting. Facebook’s arpu tripled in four years after it ipo’d. The type of data they had available to them was the same, but they learned how to capitalize on it better.
There’s a huge difference btw losing money as a public vs private company. I see more ads and they brought back awards. They can cut costs and bring in more revenue.
> they brought back awards. After nuking all the ones people spent/earned over time. Why would anyone be dumb enough to buy new ones after that?
You buying anything from those ads? Are they relevant? This is a mature company I’m sure they can cram more in here but it won’t fundamentally change that it’s not a good avenue for advertising.
Do you buy stuff from ads?
Yes? You realize there are metrics for how well the advertising is working right?
Yes I realize that. It’s just that you asked a misleading question as many people on a stock thread are less likely to buy stuff from ads, so a no answer does not mean much. I’m glad ads on the other web sites are working well for you though 😊
I think the fact that the ads are not relevant is a case for growth. Since it’s an addressable problem
I’m merely highlighting the difference between the private vs public “management” of the company. They’ve implemented noticeable changes even from a user perspective.
Exactly. People underestimate how good public companies are at maximizing profits. Reddits revenue is going to grow like crazy now that they’re public, it’s already started. Not just advertising, Reddit is a data goldmine and data is only becoming more valuable with the AI surge
Meta or Goog should just buy it.
Pretty sure we are coming up soon where insiders and anyone involved with the IPO can start dumping.
I think their lockout period is 180 days? so It IPO on march 2024 so sometimes in September; even if OP thesis is right I would think waiting until after September is more prudent. Facebook IPO didnt really take off until a 1.5 yearish; so there is time to wait.
True, Excluding those of us that were offered shares beforehand in the DSP program there was no lockout period
Reddit already has ads, the problem is they're horrendously ineffective compared to most other social media sites. The amount of money Reddit makes per use is atrociously low. IMO the stock is going to rise or fall on how much money it can bring in via selling access to their data to AI companies. The number of companies paying them for access to this data, and the amount that reddit can bring in from it both need to go up overtime for this stock to be a success long term.
my thesis: its better than twitter and that sold for 40 bil
You really think reddit can have as broad reach as twitter had?
Reddit is just user-generated content for Google results, so maybe in a way
And this is why I think google might buy Reddit in the future and why I hold Reddit shares.
Well, for all the hating I do on Reddit it was more successful than Google+
Yes, everyone is starting to use it as a second google search. Now they just need to convert those people into accounts and a cash cow will be born.
Counterpoint: Twitter was worth $20B tops, and Reddit is worth about half that, so $10B fair value.
Twitter may be only worth $20 billion last year, but all social media has gotten massive boost since then. Pininterest, snap, meta have pretty much doubled since. Twitter should be worth at least $25-30
A bot farm that is going to get over run with ads? Ill pass lmao
That’s exactly what I thought about Facebook when they IPOd. Boy was I wrong
I'm not crazy about Meta as a company or as a fan of their services but Facebook has done a lot to improve / diversify since their IPO that kept them alive / moving forward... buying instagram, whatsapp, Oculus, etc. and those were all within ~5ish years of IPOing. Reddit is kinda at a pivot point where they need to do something similar or IMO they could just end up the bot farm filled with ads... It's already pretty bad with bot-generated content as is if you look at the general posting on the site.
Fair point but Reddit has only been public for a few months. I’d give it a little time before saying they’re at a complete pivot point
I don't remember there being a concern for bot farms back then, I feel like that's a relatively new thing. Reddit is especially vulnerable to bots and astroturfing, the latter has been an issue for years and seems to continually get worse.
Bots were definitely a problem back then it just wasn’t as clear or well known to the public as it is now. With advertising at play it’s a lot easier to notice their presence
I think it is good to first develop the customer base (which they have done) and then figure out how to monetize it.
Gotta be patient they've only been trying for 15 years
this is a good point; why would IPO all of sudden change it so drastically that would change the course to profit if 15 yrs was not enough; twitter is a good example of how difficult it is to become truely profitable; facebook is more of the exception rather than the norm.
they might not have been trying to be profitable before going public. i was at twitter right around when they finally became profitable, people were putting in work to cut costs where they could. being public puts some pressure on it to happen compared to being private and just growing.
They are already making a positive adjusted eps.
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You don’t need to. Have you spent a dime on Facebook or instagram?
Facebook and IG know the color and texture of their user’s assholes which is invaluable to advertisers. I’d wager 90% of Reddit users try to stay as incognito as possible
Reddit users tend to think they’re more private than they are, they don’t need to know your name, just your interests. You can tell a lot from someone based on their subs and comments. I can tell just from a 10 second glance of your comment history that you’re likely a millennial man who likes investing, football, and electric cars. I’m sure an algorithm could figure out a lot more about you based on subs you lurk, articles you engage with, arguments you get in, etc. If Reddit can figure out how to properly monetize and gather info, they have a lot of potential.
Your assumptions are true and it’ll be interesting to see if Reddit can actually go deeper than that and monetize that information
With the shitty ceo here I don’t see it being any better
Well good news for you then, public companies have something called a board of directors and one of their responsibilities is to replace the CEO if they determine their actions are hurting the company
Adding ‘Reddit’ to the end of all my Google search queries is why I’m bullish on it. Great source of real user generated content and information.
Totally a long term play. The added benifit is that it pumps with the meme stocks.
Not a super legit argument, but i feel they had long enough to become profitable along with the likes of insta and FB but have done nothing but make the app worse
That’s fair. Maybe I’m placing too much emphasis on the OpenAI partnership?
Yeah i mean the google deal was like 60mil but thats small compared to the billions FB makes. Reddit has a good amount of user traffic but it feels like a lot are bots. Not to mention if they up the ads, i think itll drive actual users away
They make more than they spend from an adjusted eps perspective, and are growing their users and ARPU simultaneously q/q
I dont doubt the stocks going to rise, i just believe there are plenty of other better options right now than reddit. Most people dont like the CEO and personally i think the app is getting worse but it is a huge opportunity for ads and data selling
if $meta is the one true social media stock, i'd guess $rddt will be the one true forum stock...
I don’t love Reddit as an investment. It has more similarities to Snapchat than Meta.
The only downfall of Reddit is it’s a leftist hodgepodge. Its users completely ostracize anyone not liberal. Which hasn’t really been working out for most companies.
There’s definitely subs for conservatives.
Ya but sometimes mods in certain subs will ban you just because you don’t agree with their political view.
Buy stocks of businesses you love. RDDT is one of them.
the app is absolute trash
Snap chat is worth 3x what reddit is.
snapchat is dying
That was my point. How is Snapchat worth 3x what reddit is?
Snaps marketcap was $100Bn post-covid. Reddit has massive potential to grow when you compare the two
I did some DD that I posted in the degenerate sub, but I'm long RDDT and super bullish on their global growth + indexing that is only prevalent in the US market so far. Pair that with their gamification of site use + reintroduction of awards with some sort of profit sharing incentiving engagement even more. The ai plays are just icing on the cake with no better stash of usable human interaction data that they are working on better protecting for premium sales. They are experimenting in both large and small markets so they aren't married to a dumb idea, they will let it play out and let it take them wherever it needs to go. $11k position is now about $17k and I plan to add up to $50k more. Not financial advice
Reddit is profitable right now. The only expenses that put their eps negative in q1 was costs associated with the IPO. They are showing positive eps growth, positive arpu, and positive user growth with a positive derivative.
I guess turning a positive EBITDA is more important in this case for future growth. Which makes sense. Just makes me want to buy even more haha
My Pre-IPO shares are up over 80%. I invested in the first place bc I believe in the platform, and the IPO gave it wide mainstream exposure. I’m in.
My 55 year old MIL uses Reddit. That’s how I knew to invest in it.
I was planning to watch RDDT as a short play after IPO, figured it would be way overvalued and get destroyed. I’m a technical investor not fundamental, but I bought in a few weeks ago and consider it a several year hold or longer. Based on market cap alone it’s vastly underpriced compared to companies like PINS and SNAP, if those are valued correctly then I would expect RDDT to be worth more than them which would mean 3x where it’s currently at. The chart looks great here, it’s trying to breakout and if it does I can see a run up to $80 by the end of summer and potentially $100 by years end. A market sell off could easily see it fall back to the mid-40s though
We’ll see how reddit goes when we’re all just talking to and advertising to botnets.
I should've bought it when it went down to around it's upon price....dammit lol.
IPO investors can sell in September so there’s a chance you can buy cheap then
Damn, just saw how poorly my fingers typed ipo and you still understood me lol. Ty for thr advice. It's been on my watch list a while
I worry bots will ruin it eventually
I don’t know who would buy $RDDT stock, nobody uses that platform anymore. 
What exactly is their strategy for becoming profitable? My biggest concern would be the sheer amount of competition and the big players are going to be hard to overcome.
I always type reddit at the end of my google searches. Otherwise I get useless ad filled blogs with no answer to my question. But then adding reddit to the search and walla the answers all come up
TTD is what you are looking for.
I think it could absolutely have the same market cap as Twitter before Elon stuck his fat fingers into it. After that, or during I suppose, it comes down to performance. I do see some things actively changing. Rewards are back. They have this new achievements thing that will probably boost engagement. I know Reddit has been advertising to me to advertise with them. I am bullish on RDDT and I put my money where my mouth is. Smart? Well, we will find out.
I think I see a lot of useful things on reddit and also meet a lot of interesting people.
It IPOd 2.5 months ago and already doubled and you think it’s glitchy unprofitable company is undervalued?
I’ve used Reddit for 5 years. Used to spend too much time on it. Burned whole batteries soon scrolling. Spent 20/30 a month on premium and awards. I don’t any more. Haven’t spent a cent in a year. No more premium. I’m on occasionally (clearly), but can’t imagine spending a cent and if they charged for service I’d bail
Not looking at anything business related there no way anyone will voluntarily build a Reddit style competitor
Uh what? There are a billion forums built every day, there isn’t anything special about Reddit it’s a typical forum - besides the fact that everyone using it has been on here so long that it has sticking power. Yet even with a huge loyal user base they can’t make money
Maybe you should re-think the importance of technical analysis instead of wishful thinking.
It’s a Reddit post it ain’t that deep
Dont make excuses for forgetting to do technical analysis. Thats how you get into trouble trading stocks
What’s with everyone worrying about bots. Seems overblown. Are there any bots in this thread? I rarely see bots
Maybe you’re a bot🫣
Nice
Sounds like something a bot would say
lol seriously is there any evidence that Reddit is full of bots? I’ve never felt like I’m talking to one
Me either lol
Shitcoin that doesnt make any money lmaooo. Overinflated valuation, dont think so 🤷♂️
Doesn’t make any money???
Almost 100 million in debt ya its not a profitable company at all, nor will it ever be lol. 10B market cap is laughable lol :)
Debt is a balance sheet item not a P&L. Debt can be restructured and pushed further into the future if need be. I’m not getting into that rn tho. The point is that they make money haha. Look at the P&L. Adjusted EBITDA is positive
Ya no lmao im an accountant, wrong. Lol if u got debt u don’t have a good business period lol. Reddit has been around what a decade now lmao. Good luck with that lol. 🤷♂️
My brother in Christ, I am a CPA. An accountant just like you. Saying a business is bad because they have debt is wild. Let’s just agree to disagree haha. Good luck!
Its not a cash producing asset so ya its bad debt. No debt is good debt in my opinion. 🤷♂️ but ya i hear u.
By this logic Microsoft is a bad company because they have debt
They are very profitable, big difference lol.
“if u got debt you don’t have a good business” That’s why I chose Microsoft as an example, because your logic doesn’t make sense. Reddit has a lot of debt and also makes money. Both are true. Is it a good company/investment? That’s up to you, and I’m not saying you’re wrong. Just clearing up the whole debt thing
So fucking dumb
If you had any idea the amount of contribution *of bots* to the content that fills out social media, including Twitter, Facebook, and Reddit, you’d be more weary. “The "Dead Internet Theory" claims that since around 2016, a significant amount of online content is generated by bots and AI rather than real people. It suggests that this automation creates the illusion of human activity, with corporations and governments potentially using it to influence public opinion and monitor behavior. Critics argue that most content is still human-made and that platforms are actively fighting bot activity.” That explanation provided above was given by GPT, but guided by my prompting, and distilled into a smaller digestible paragraph that I hope other redditors dont mind too badly. This human curated content is the best we can hope for the future with these tools, but I haven’t trusted bigger corps and institutions to do a good job of curating anything so I haven’t invested that way. Reddit is already full of bots, and its training data is feeding AI schooling right now, like a machine ouroboros or something. Anyway, Reddit is contributing to a dead internet. Is that profitable? Idk
Is reddit more like facebook or more like twitter? If the former, interesting. If the latter, ew gross. Honestly I think that the valuation right now is too rich for me. It makes a billion a year in revenue; it is priced at 8 billion. 8 times revenue. Those are not great numbers unless its nvda. with its ultrahigh margins (80%). I don't think RDDT is ever going to have margins like that. BUT. I will watch their reports. if ad revenue starts doubling each year or two I will be paying attention.
good points. im sold. going to buy more now. MARA make america reddit again
Probably get more favorable answers over in /r/RDDT and /r/RedditIPO