The stock has good fundamentals, growth and margins. One thing I'm worried are ads, AI scraping, bots and rddt not being as attractive to most as Instagram or sloppy tiktok.
Huge upside based on analyst ratings and 30% from ath.
What do you guys think?
Any bull case for reddit?
byu/Resident-Paint-8318 ininvesting
Posted by Resident-Paint-8318
10 Comments
Model training with the most organic material available + You’re on it right now. I hate this stock personally
reddit will continue deliberately undercounting bots to inflate active user metrics, just like every other social media app.
at the same time they will continue to increase ad appearances in user feeds.
as a result user experience will continue to fall, organic users will leave the platform and the site will feel less and less useful or real.
Love reddit as a social media platform. A little iffy on it as an investment. User growth seems to be fantastic but I worry about ad revenue long term, for no other reason than because I feel like Reddit’s format makes it easy for my eyes to move right over an ad without “seeing” it. I honestly can’t tell you anything I’ve seen advertised on reddit. Contrast that with youtube, where I will willingly, if not grudgingly, sit through ads for Progressive Insurance and expedia in order to watch something.
I was very heavy in it during its open and initial runup, the pricing made zero sense for how popular of a platform it is. $40-50 a share was legitimately the most obvious 2-4xer ever.
That said, it’s extremely overvalued atm, I sold all of my shares on it first massive rip to mid/late 200s. I don’t see the value in it long term at these levels.
It would need to severely productize so many different aspects and even if they did ultimately a lot of the commenters on most major subs are legitimately deranged lunatics which isn’t something to build a company around.
There’s also significant risk with all the shady af subs that pop up from time to time (like jailbait, creepshots etc) and can become quite popular.
Sold my RDDT, holding 0 🤷♂️
Reddit is far off 30% from ATH.
They are down closer to 46% from ATH, and would need to go up 84% to reach their ATH from here.
I’m holding what I got in with @ ~$109/share. It is difficult to justify either buying more or selling, since my “daily user” brain fights my “investor” brain all the way. So, I hold.
Ironically, AI might make Reddit more valuable because authentic human discussion is becoming harder to find online
“The stock has good fundamentals, growth and margins”
Could you list these out? Anyone can say that about any stock without pointing out specifics.
To be honest I feel Reddit is about the same level of enshittified as any other social platform. designed to be as addictive as humanly possible, but at the same time the user experience is become hollower and emptier and more ad riddled than ever, and I predict people will start jumping ship at some point. you might see some growth in the near term but at some point, the enshitification to engagement curve will move in the opposite direction and people will leave. The platforms will have no options left because the only lever they have to pull is the enshitification.