$Reddit(RDDT)$

Full disclosure, I got access to 100 shares in the IPO as a ten year high karma contributor to Reddit in areas completely unrelated to finance.

Looking at the financials on this company, it appears a significant share of revenue last year went to two people in the form of stock options. This means that RDDT can IMMEDIATELY show a profit by reducing executive compensation; in fact, their compensation was so high I don't think sustaining that would survive shareholder pushback. I have been noticing some very real changes to the Reddit interface to improve usability and increase engagement with the site and content. If one assumes that the people running Reddit are self interested in their own net worth (usually a safe assumption) they stand to make a massive capital gain if they show a profit as a publicly traded company.

I thought hard about selling at $60 but I am hanging on to my shares. For those that missed the IPO, there isn't a big difference between $34 and $46 if this does anything like FB or TWTR. I have no idea what it will do but I do know the markets like tech companies that actually show a profit and RDDT can do that without increasing revenue.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • The changes to the Reddit interface are also promising for engagement.
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  • Agxm
    ·04-11
    Can and will is 2 different things.
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  • MR_Wu
    ·04-11
    👍
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