I'm curious to know what other people think about it. I bought almost ten shares of it when it first came out in 2024 at 34/share, and now it's up to mid-250s. Do you think it has potential for substantial long-term growth? Or will it be a victim of the eventual AI bubble burst? (I do think it is coming)
Thoughts on the RDDT stock?
byu/RelationshipNo556 ininvesting
Posted by RelationshipNo556
7 Comments
I believe it’ll come down eventually before going to the moon. Long term on this one
Reddit is correlated with AI?! Look at Tech after the .com crash. Moments in time….
I have a mid-5 digits position on it at a cost basis of $110. I’m riding it until I need the money, which hopefully is not for a solid 10 years
RDDT
Fairly undervalued
I think they will doublen the current ARPR and then increase DAU by steady 20-25% each year. That means in 3y 60% more user with double the ARPR.
This means yearly earnings of about 2.2bn $ and is a P/E of 19.
If they license the data for 1bn a year which should be easily possible we are talking about a p/e of 13.
I dont think p/e will drop below 40 soon so it should tripple if this assumptions are correct
Frankly, I see it as overrated and hyped. Not profitable, popular with retail investors only, and uncertainty about their business model.
Obviously our opinions are biased man
What AI bubble? And why would RDDT be in that basket?
RDDT had textbook action after breaking to new highs, returning to re-test the prior high of 230 from early this year. Chances are, it will stay above 200.
If you bought at $34 I’d put those shares away and forget about them for a long time. Even if the market has a major correction, the stock is likely going to hold the 178 gap or if not, the 160 breakout.