Reddit Inc. (RDDT)

It's going sideways after a big pullback. $120 could be support. Stable, but it hasn't turned up yet. $150 would be encouraging.

Nice, constructive chart. Big run last summer, going sideways toward the end of last year. In last month or so, quietly resuming its uptrend. This technical pattern is really strong and really powerful -- it's called the staircase pattern (rally, consolidate, rally again). Resistance looks to be $275-280 -- if it breaks out past that, a good sign.

Is incredibly undervalued. He reads it often. It offers quality ideas and writing.

They offer some of the best digital ad rates and targeted audiences. It's growing by leaps and bounds. Last week, they reported 70% revenue growth and huge margins. Their partnerships with chatbots to license its data could grow larger over time. Will benefit from AI.

This pullback allows you to buy some shares now, then wait if it falls again. He believes in it; their numbers are good,.

At $80 in the spring, got above $240. A triple in a few months. With that type of explosive move, doesn't take much for people to say that's it, I'm out, and take profits -- doesn't even have to be directly related to the company itself. Hanging out ~$200, previous resistance ~$180 and that's potential support. Resistance perhaps $225 on a bounce.

Given the two peaks in August and September, watch for a head-and-shoulders top; too early to say right now. At the moment, looks like normal pullback after humongous move.

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.
Unlock Premium - Try 5i Free

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

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

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.

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.

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.

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.