Key insights
- The author argues Reddit is a better investment than Meta, citing Reddit's high revenue growth and gross margins despite minimal CAPEX. They highlight Reddit's strong Q1 performance and optimistic Q2 guidance, suggesting potential for outperformance. The large cash balance and share buyback program are also noted as positives. However, the analysis is limited and lacks broader market context.
Reddit spent $1 Million this quarter on CAPEX, yes ONE fucking million dollars and still grew Revenues +69% and earnings 31% YoY while maintaining a 91.5% gross margin, 7th consecutive quarter of 60% sales growth. Dont let META bulls see that they spent 1 million on capex lol
They made 660 million for this quarter and are guiding 60 percent revenue growth for Q2 they always sandbag guidance so actual number will be higher.
They now have almost 2.7 billion in cash depending on if they initiated the 1billion share buy back program form last quarter