RESEARCH

Reddit set to catch up to tech giants

While a small niche player in social media and not yet profitable, Reddit boasts a unique platform, high gross margins, outsized growth among high-value US users, and a strong focus on improved monetization. These factors should drive a closing of the gap to peers.

Johan Widmark

Apr 29, 2024 — 7 min read

Reddit (RDDT) went public at $34 per share and shoot up to touch $70, but has since retreated to mid-$40s, creating a buying opportunity. With emphasis on communities and common interests, distinguishing itself from other social media platforms, Reddit's growing user base, mainly in the U.S., provides a strong opportunity for growth and monetization.

While the operations are not yet profitable, we see a fair chance for a multiple expansion to 6x current-year revenue, mainly because it's a unique platform with a wide moat, positive user metrics, and a nascent ad machine with room to grow.

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AI boom about to create bottleneck in HBM chips, where Nvidia's supplier SK hynix holds a 60% market share. Here’s how it will triple earnings

TALLINK: All about the Dividend

Model Portfolio up 28% (vs SPX 17%) on strong $RDDT and Silver - now adding SK Hynix on surging HBM chip demand

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