Woof. This stock is down about 40% in a single month since their last earnings and shows no signs of stopping.
From my understanding, the drop has been driven by a few key factors:
* **Missed user growth expectations** (101.7M DAUs vs. 103.1M expected)
* **Insider selling en masse** (Execs dumping millions in shares last month)
* **General market sell off & post-IPO volatility**
At the same time, Reddit is a **top 10 website in the world** for web traffic, has been rapidly increasing ad revenue, and is now *wildly* undervalued compared to other social media giants.
So the real question is... what's next?
* Is this an absolute bargain right now, or is there still more room to fall?
* Could Reddit be the next Facebook, or is it doomed to be another Snap?
* What would be a solid buy-in price to you?
I've bought about £100 worth at $171 so thank fuck I didn't load up more. Once the dust settles, I think long term I'm going to be loading up a bit as I think people are probably grossly underestimating the amount of cash they'll rake in through their paid subs (onlyfans promoters will go wild for them to be separated from the floods of bots).
That being said, the wider economic outlook isn't great (although I don't see how recession or tariffs should impact RDDT at all outside of less people looking to advertise).
It seems unlikely to end up like SNAP since they're already profitable (unlike SNAP).
Would love to hear everyone's thoughts. Are you buying, holding, or staying far, far away? It does seem that other than Facebook, social media doesn't tend to perform particularly well considering how massive they are.