Colin Cieszynski Reddit Inc. RDDT-N WATCH Oct 02, 2025

Went down. There was a big short squeeze. The CEO is doing very well, but fell short of high expectations. Start a position now and leave room for adding more if it goes down.

Expectations were too high going into the quarter, and there was no way they could be them. Shares have since fallen enough for a partial buy and an entry.

Is -27% this year, but above its IPO. Have grown revenue 50% in the past 3 quarters. The last quarter was amazing. Hold $2 billion cash. However, they are closely tied to search, and AI will take a lot of that business away. Also, AI searches are using their answers. Also, trades at a high 52x PE. This will be okay, but buy lower.

Is one of the most popular websites in the world. Is -44% from its February peak and a buying opportunity today. Soared 11% today. A wild, volatile stock though. Two weeks, they reported a stunning quarter with top and bottom line beats. They're growing fast and keeping costs down, so that means profits. Despite market worries over digital ads, Reddit execs offered strong guidance in earnings and revenues. And yet shares sank after that report; the sellers were wrong. Some analysts feared growth was slowing, even though numbers were good. Also, company guidance was cautious in its user forecast due to changes in Google's search algorithm; Reddit depends on Google to drive traffic. However, active advertisers grew 50% YOY, including in pharma, autos, telcos and financials. This puts to rest fears of Reddit unable to monetize its user base; 40% of Reddit chats are commercial in nature. In AI, Reddit has entered contracts with OpenAI and such to give access to Reddit's data API that will offer a AI a huge archive of Reddit's user-generated discussions; this will help train and improve AI. However, shares trade at a high 54x 2026 PE, though earnings are suppose to grow 85% in 2026. Buy Reddit here, but it is volatile.

I was a short squeeze, sending shares to $200. Shouldn't have happened. The CEO is doing a great job. It's the best bang for the buck in advertising.

The quarter was much better than people realized. They're starting to cut some big deals.

Fine CEO and their ad business is good--is cheaper to target an audience here than on other social media.

RBC Capital came out with a report showing declining RDDT daily average users (DAU). RDDT's citation share on ChatGPT has also shown a recent decline. These data points do fluctuate a lot, and the stock remains up strongly for the year to date. We would hold for now but buy into any further declines.
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This pullback allows you to buy some shares now, then wait if it falls again. He believes in it; their numbers are good,.