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    RDDT is a powder keg

    I’m not going to go into the fundamentals on RDDT because that’s been beaten to death.

    What I think people are still underestimating is the legal overhang. The main one is Anthropic, with Perplexity and other LLMs clearly in the mix. Anthropic paid to settle the book copyright case where it was accused of training on pirated books. Money changed hands and a precedent was set. You don’t just take data for free and call it innovation.

    My bet is this ends the same way for Reddit, with a favorable settlement and a real data licensing deal. If that happens, the stock reprices immediately because the market hates uncertainty more than anything.

    Once one major LLM settles, the rest fall in line. At that point Reddit becomes a paid, unavoidable input to the AI build out, not something models can just scrape for free.

    This is probably also why Steve Huffman keeps sidestepping the question on earnings. You don’t say much when lawsuits and negotiations are active and the outcome could materially change the business.

    To me this feels a lot like Google during the DOJ and Chrome divestment noise. Every headline caused selling and sentiment stayed broken. Once that overhang cleared, the stock finally started behaving like it should have

    TLDR; RDDT will rocket once news of Anthropic lawsuit is concluded. NFA.

    Positions: 3400 shares of RDDT and 90 calls of 220 4/17

    RDDT is a powder keg
    byu/early-retirement-plz inwallstreetbets



    Posted by early-retirement-plz

    24 Comments

    1. jamieperkins9999 on

      Way too much bullish sentiment on reddit right now despite the huge drop, people are holding some heavy bags they are trying to offload.

      Ill wait until everyone has given up hope and get extremely bearish on it.

    8. Chuck-AP on

      I agree. I got leaps on Friday and am holding and adding to my share positions. Its just a matter of time until we are back at ATH’s with the strength of their balance sheet

    16. elgin-baylor27 on

      Sure but what happens when advertisers realize that most of the engagement here is artificial?

    17. Thoughts_For_Food_ on

      Also one of my convictions for 2026-2027. Loading with shares at every opportunity.

    18. Hotmicdrop on

      Reddit becoming some defacto AI data mine is hilarious and frightening. Google AI pays Reddit and the memes on YouTube of the shit it says is unreal. Are you sad? Go use the golden gate bridge. Why are cockroaches called that? Because they live in cocks… seriously all on video. Google and anyone else paying Reddit to train their AI is getting worse than scammed lol

    20. ShittyBidet123 on

      Bro everyone taking data for free and call it innovation.. then pay a small price. are you high. I think you may be overestimating the “data” here its mostly degens and autists power tripping over who wins superman or goku and lots of trash

    22. eifinator on

      I don’t see how the company makes money off of training AI on foreign bot conversations.

      The older data is great, but the value of newer post and comment is declining rapidly. So unless Reddit gets a perpetuity deal, these company’s will not renew contracts when real user interaction inevitably dies.

    24. TomatoSpecialist6879 on

      Logically sound DD, and for that reason we’re on track for another leg down until it hits -80% ytd

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