Bull thesis:
1. When AI companies literally have more money than they could ever spend, they’re gonna want the best version of Reddit and not some scraped version. The AI competition is so close and so important to future funding, the quality of scraped vs. licensed data is material. Another round of contracts with their current and new tech companies is inevitable, expect a 10-20% bump.
2. S&P500 inclusion is also inevitable now that it’s completed all entry qualifications which will push the stock yet another 20%. The S&P500 with its recent increase in market cap req has some overdue companies it needs to cut.
3. Reddit’s growth is absolutely torching IG and X who both actually have negative traffic growth according to Google trends/analytics. In fact, Reddit just jumped from 7th to 6th place in global website traffic on Semrush and is within arm’s distance of IG who’s in 4th and chatGPT in 5th. IG is completely saturated and you’re either on it or you’re not while Reddit is just now investing into international countries.
4. Fuck all the other social medias like IG, YT, TT, X, FB, all of it! People are so done with not being able to downvote BS or not being able to speak their mind for fear of becoming an outcast in their circles. Worst you can do is “ratio” someone. The fuck is that?? I want to see them downvoted to oblivion! Anytime there’s something exciting, you will never catch me engaging with anything on FB/IG but you will get my opinion on Reddit and that sentiment data is 2nd to none. Which is why they just partnered with NYSE for sentiment data.
5. For everyone complaining about bots, Reddit is hands down the best major social media site to handle them because they’re so easy to spot and downvote. You see them all on IG but you can’t do shit about them. On Reddit, they get downvoted enough, they get hidden. And EVERYONE has had that question that no one could answer except some random dude on Reddit one day.
Long story short, Reddit may not completely replace IG but it’s going to be a helluva lot closer over the next 2-3 years. Reddit’s a bit behind in profits, sure, but you can’t convince me that Reddit is only worth 1/50th of Meta by market cap. No way.
You don't think NVDA, MSFT, AAPL, AMZN, META have any tangible value? I would read a few 10-Ks this weekend. These businesses are scarce and fantastic to own. I would also read about DCF theory. These five corporations also make up 26.7% of just the S&P 500 which is not the entire market.
Skepticism of the market will far more often than not cost you heaps of money; on rare occasion will a skeptic be compensated for withholding participation.
Amazon being such a dog might continue until they kiss the ring. Google, AAPL, and AMZN were the three companies that didn't at first.
Apple eventually did, and gave mango the famous gold bar statue thing publicly, and finally stock got some lift.