The Market Still Doesn’t Know How to Price Growth Stocks
Reddit combines 66% revenue growth with strong profitability (90% gross margin, 35%+ FCF margin), $2.8B net cash, and $1B TTM FCF, but still trades at only ~$30B market cap. The company offers an exceptional risk/reward relative to its quality and growth velocity, with significant operating leverage and scale opportunity as revenue growth should expand the earnings denominator.
At post $153.00·Now $150.85-1.4% since postedas of Sep 18, 4:30 PM ET
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WSJ: Nvidia Has Become a Banker to the AI Boom, Putting It on Dangerous Ground
Nvidia is increasingly providing financial backstops and vendor financing (~$230B+ in lease obligations and residual-value guarantees) to sustain chip demand, a strategy that concentrates downside risk. A weakening in AI chip demand could stress its balance sheet and reduce investment values, mirroring the failed vendor-financing strategy that brought down Lucent Technologies during the dot-com bubble.
At post $209.43·Now $230.18+9.9% since postedas of Oct 1, 1:01 PM ET
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Everyone Is Misreading Reddit’s DAU Decline
Reddit is strategically transitioning from a search-dependent website to a direct, logged-in platform with high user stickiness and valuable proprietary user-generated data. Despite DAU decline concerns being misread, the company maintains 8 consecutive quarters of 60%+ revenue growth at 30% net margin, while controlling one of the largest collections of human conversations in an internet increasingly restricting free AI data access.
At post $150.31·Now $150.85+0.4% since postedas of Sep 18, 4:30 PM ET
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Reddit vs AppLovin vs Palantir
Palantir operates a deeply embedded enterprise/government software business with strong revenue growth, but valuation and increasing competition present material headwinds. The structural stickiness of embedded software provides a durable moat, though the author expresses valuation concerns.
At post $175.19·Now $177.64+1.4% since postedas of Sep 18, 4:30 PM ET
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Reddit vs AppLovin vs Palantir
Reddit's unique advertising model leverages highly specific, self-organized communities to deliver precisely targeted impressions to intent-rich audiences, generating 8 consecutive quarters of 60%+ YoY revenue growth and >150% EPS growth. The structural advantage of community-driven targeting differentiates it from broad advertising platforms and supports continued upside.
At post $151.71·Now $150.85-0.6% since postedas of Sep 18, 4:30 PM ET
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I Still Don't Understand Why Reddit Is This Cheap Compared to Everything Else.
Reddit is severely undervalued at ~$32B market cap relative to peers with weaker fundamentals. With 61% YoY revenue growth, 31% net margins, strong moats from community-driven user stickiness that cannot be replicated by AI, and minimal direct competition, Reddit deserves a valuation comparable to Palantir ($420B) and should trade much higher.
At post $151.71·Now $150.85-0.6% since postedas of Sep 18, 4:30 PM ET
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How I Get to PT $550 RDDT in 2027 — The Math Behind My Price Target
Reddit will maintain 50-60% revenue growth through 2028 while holding net margins at ~30%, driving EPS to $10.73 by 2028. Valued at 51-52x forward earnings, this supports a $550 price target for 2027; margin expansion to 40% could support $900 by late 2028.
At post $164.50·Now $150.85-8.3% since postedas of Sep 18, 4:30 PM ET
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Reddit Doesn’t Need to Become the Next Meta to Win — But I Think It Will
Reddit has demonstrated consistent 60%+ revenue growth with rapidly improving profitability while remaining early in its advertising monetization journey. Management has recruited key executives from Meta who are executing a proven playbook, and the company has significant upside from monetizing existing users, data-licensing opportunities, and potential product expansion into communications, payments, and AI—creating conditions similar to Meta's early post-IPO period.
At post $164.50·Now $150.85-8.3% since postedas of Sep 18, 4:30 PM ET
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TTD Is a Bad Investment: Everyone Has an Incentive to Cut Out the Middleman
The Trade Desk is a structurally flawed middleman business with no durable competitive moat. Both advertisers and publishers have strong incentives to cut out the intermediary, and AI-driven automation of optimization, bidding, and campaign management will commoditize the services that historically justified an independent DSP, making TTD a slowly dying business over time.
At post $13.40·Now $12.14-9.4% since postedas of Oct 1, 12:31 PM ET
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