Key insights
- The author presents a bullish case for Reddit (RDDT), citing user stickiness, advertising expansion potential, an undervalued market cap, and increasing mainstream adoption. The argument centers on Reddit's unique communal value and scalability, suggesting potential for future growth in user base and advertising revenue. This could positively influence RDDT's stock price, but the overall impact on the broader US equity market is limited.
My thesis on being bullish on Reddit is simple: 1) None of us are going anywhere
2) There is significant expansion opportunities for advertising
3) It's market cap is 30b, which does not feel right (I know this sounds stupid, but it's true)
4) Reddit is no longer only used by weird internet people, a lot of normal people are beginning to use the platform
All I care about is scalability, and I think Reddit is positioned extremely well to expand its user count and advertising landscape.
I come to Reddit daily because it's one of the few places that I can discuss certain topics with others, and I can't foresee this "communal" value being replaced by another platform in the near future.