RDDT is going to crush its next 2 earnings and you are overlooking it

“B-but reddit sucks and fuck spez… amirite?” Yeah yeah yeah, it's super cool to hate on Reddit as a Redditor.

That doesn't change the fact that you are using the platform right now, and YoY daily active users increased by 37% as of the first RDDT earnings call.

“But Reddit has never made a profit” – Yes, low expectations are why this is an opportunity. As dumb as it sounds, Reddit has never tried to be profitable. This is changing as they are now a public company with fiduciary responsibility.

1. Advertising – RDDT's huge investment in improving their advertising technology for advertising customers is beginning to manifest. They are beginning to finally enable effective target marketing based on user interests, demographics, etc. Remember, Reddit user interests and hobbies are neatly sorted into what subreddits they are subscribed to, visit, and their comment history. I can feed an AI a Reddit user's comment history and it will create a pretty accurate profile of their interests, hobbies, age, location, and problems. This is a medium absolutely RIPE for advertising, and Reddit's recent partnership with OpenAI WILL be leveraged for both target marketing and advertisement creation.
2. Reddit marketing campaign – Reddit's marketing campaign to get companies advertising on Reddit is in full force. Ads are beginning to swarm Facebook and Instagram. I believe that based on the companies I've seen advertising on Reddit recently (Apple, Samsung, HIMS, small businesses, and much more) that it has been effective at gaining customers.
3. Reddit user growth 37% YoY – Reddit's partnership with Google is serving up Reddit to normies in swathes. People who might not have been aware of it have been using it for research, opinions, hobbies, etc. Many of these people will, and are, being pulled in as full reddit users. I caught my normie wife using reddit for her crafting hobbies and pregnancy products research. People are appending “reddit” to their Google searches because they crave authentic human discussion. This is not even mentioning short term catalysts for people visiting reddit for human discussion: 2024 US presidential election and associated turmoil
4. Reddit user demographics – Reddit is inherently commercial. People discuss purchases, hobbies, and interests constantly. Its users are also largely high income individuals in 1st world countries between the ages of 18 to 40. This is the most valuable demographic for advertisers, as these people actually have discretionary spending ability.
5. Reddit's moat and competitive advantage – Reddit's collection of communities and cultures spanning almost every interest has kept it growing steadily for over a decade. No other single platform beats it for ANY individual to find several communities that meet their interests in one place, share news, participate in authentic human discussion, and access a treasure trove of questions asked by users over the past decade. Reddit doesn't always have the best answers to questions, but its discussions are largely real people sharing honest opinions, and that has a lot of value.

———–Long term bull cases———-

6. AI Data Deals – AI is getting more advanced and will rapidly continue to do so for the next decade. Reddit contains 15 years of human discussion on every topic imaginable, and it is constantly building its data for every fresh topic. This is a valuable data source for LLM training, and there could be growth in this sector. “B-But pizza glue” – We are still in the early stages, and the pros will outweigh the cons long term.

7. Reddit Marketplace – It's only a matter of time before reddit facilitates C2B and C2C transactions for its many hobbies and interests. There is money to be made there.

8. Meme stock potential – Reddit has made the news countless times. For the past few years, it has become a meme stock generator attracting the attention of institutions and retail investors alike. If it starts to spike, which it will, I can see the potential for a “meme buy-in” of a stock like RDDT.

9. Acquisition – If big tech decides to acquire reddit for any number of good reasons, you win as a shareholder as they will pay a premium.

10. International expansion and AI translation – Reddit is investing heavily in using AI to translate all content as human readable across all languages, with the goal of connecting people internationally and expanding its audience internationally. There is a shit ton of money to be made internationally and it is only a matter of time before this occurs.

“When is the next earnings call?” – August 6th. I think this has the potential to crush, and the following one in early November will have even more potential.

Similar company valuation comparison: I believe the following valuations are FAIR for how much revenue has been reported recently, but I believe it does not account for what will be a big surge in RDDT revenue. Reddit will easily meet the valuation of Pinterest, making it 3x. Longer term, I see 8x-10x.

RDDT – 10.6bil

PINTEREST – 28bil

SNAP – 24bil

“Okay what's your position then?”

176 shares:
https://imgur.com/a/Ne4XX5t

4 call options: 1/17/25 expiry 80 strike price

https://imgur.com/a/WJcVtkL