r/redditstock

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I think the most important question to ask for Q1 earnings is:

What % of ARPU growth was a result of ad load increases?

As everyone knows, ARPU is powering the insane growth in ad revenue, not DAUq / MAUq growth. If its a low % I think the growth runway is still very long, a high % would mean not super sustainable for years at a time.

At this point, most growth is ARPU based which I believe they can keep increasing, but ad load can only be pumped so much long run. Therefore, I think its the right question to ask and push for an answer on

I would be a lot more comfortable as a shareholder if most increases came from targeting improvements or from engagement boosts, not ad load. To be honest, I'm not concerned for the stock aside from this

As always take it with a grain of salt and "who is DA Davidson?".

From the note:

Analyst Wyatt Swanson said the company remains under-monetized relative to peers and has positioned itself as a human-first social platform that will continue to attract more users and advertisers as it scales. The platform’s impressive gross profit margin of 91% demonstrates strong unit economics, while InvestingPro analysis suggests the stock is currently undervalued.

The analyst said Reddit’s scaling should support more favorable contract renewals with the leading LLMs, a broader base of advertisers, and further operating leverage. Swanson said year-to-date share performance with no declines in fundamentals represents a compelling opportunity to initiate coverage with a buy rating.

This is partly a repost of a thread 5 days ago but without link/news back then. It is now available on yahoo news. Check the full text as it contains a few nuggets also on competition.

It finally happened.

RDDT just closed green for 7 trading days in a row, the first time in its history.

Until now, the longest streak was 6 days (only happened 4 times).
That ceiling is officially broken.

Cheers!

Alright guys what if Reddit increased logged in users with the help of their leverage they have on LLM providers? Either let the LLM users create Reddit users just to be capable of using LLMs (if their leverage is big enough), let’s say to have Reddit searchable in web grounding, or they just give out free 1 month memberships for logged in users. I’m not sure what they actually can achieve but this needs to be evaluated when making these data licensing deals.

The analyst points out they have a large monetization opportunity as their ad revenue per user is a fraction of peers. He has Reddit growing revenue at 43% this year, and 31.5% in 2027 saying “I am conservative on ad pricing and daily active users”. His EPS are $4.51 and $6.69 in 2026 and 2027. The stock is cheap and they have a lot of levers to pull.

Up to 3900 shares with the 20 I added today. Would love to get to 5,000. Feeling better about this stock than I have in quite some time. Average price is $168 a share. About to get back to even and then hopefully it’s off to the races.

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Hear me out, this is done on X/twitter. And it's really, really good. Find myself not even noticing it was AI translated and commenting on posts I would've never commented on before.

It does not sound robotic, far from it. It's pretty crazy.

Simple way to increase human engagement, I think, by a LOT.

I realized recently that downvoting any ad prevents it from being shown again. I’m not sure if it’s just a coincidence, but I mentioned this idea ten days ago in the attached post regarding ad suggestions. It seems to me that Reddit engineers really do lurk in this sub a lot.

Moreover, about 2–3 weeks ago, there were complaints in the daily thread about an algorithm glitch showing old posts (including ones we’d already interacted with) on the main feed. Within a few hours, the problem was gone.

Perhaps is all conspiracy theory, but if you have a brilliant idea to improve the Reddit experience, just post it here.

Yes or No ?

Yes, they should announce a new SBC program and updated dilution guidance at next week's earnings call to double the Share Price.

No, they should confirm their asinine dilution guidance range of 500% (500m-2.5bn), crash the Stock and run into legal issues.

Last week Peter Magyar won the election. I think it's quite bullish that some politicans are doing AMA's connecting with people. Also it has a sad ending because his account was reported by bots from the opposition and got banned later which he didn't appeal.

https://preview.redd.it/7yr9f4m798wg1.png?width=1024&format=png&auto=webp&s=6d0dab9ca203f45d79f2544ea220ef4680102cb8

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RDDT just closed green for 6 straight trading days. That’s only happened 3 times before.

Timeframe	Start Price	End Price	Gained
4/22/2025 - 4/29/2025	$94.15	$122.14	$27.99 (29.7%)
5/22/2025 - 5/30/2025	$95.85	$112.35	$16.50 (17.2%)
8/8/2025 - 8/15/2025	$211.82	$246.50	$34.68 (16.3%)
4/10/2026 - 4/17/2026	$138.38	$163.80	$25.42 (18.4%)

BTW a 7-day streak has never happened. Maybe Monday?