Rollercoasster Ride

Reddit Inc. (RDDT) on a wild trip since the subscription last year last March, as it rose from $ 34 to $ 230 before declining at $ 103 today. The bullish moment has been nurtured by the growth of the jaw, which the whispers of doubt reduce whether the momentum could continue. I bet it can. Thanks to its unique platform and its high standards in both the upper and lower lines, I see that Reddit is a rare opportunity to buy in the social media giant prepared for a great recovery.

Reddit strength lies in its vibrant sticky community. In the first quarter, the number of daily active users (DAU) on the platform reached 108.1 million, an increase of 31 % on an annual basis, while the total weekly users reached 401 million. Millions of people are now exploring all kinds of subreddits for everything from specialized hobbies to urgent news. I would like to claim that along with X, Reddit is one of the best places that you should feel the pulse of what the “conversation” is for any specific topic.

Meanwhile, the Reddit “Answers” feature, which now reaches a million weekly users, has facilitated people to find solutions, increase sharing and maintain users for a longer period. This should be a strong to medium -term stimulus for Reddit to maintain the measuring user. This isolation translates into the real survival force.

The statute’s ability to connect users to the interests of creating an effect on the network is difficult to repeat. With more users joining, the content becomes richer, and attracts more people. It is a virtuous course that drives growth and makes it magnet for advertisers who seek to benefit from emotional fans and participation.

When talking about the Reddit Advertisement works, all cylinders are shot, with the increase in the 1st ads revenue by 61 % to 359 million dollars. I really like how Reddit ads but are effective. You are deep in a topic about camping equipment, and suddenly there is a publication sponsored by a tent that fits the conversation completely.

This is a great delivery system that contains advertisers. It is worth noting that more than 50 % of advertisers joined the platform on an annual basis, indicating that brands view Reddit as a valuable channel to provide high returns on advertising spending (Roas).

Reddit data appeared as a high value, and the company began to achieve effective income. In the last quarter, revenues from data license and relevant sources increased by 66 % to $ 34 million. This growth is largely driven by the increasing demand for high -quality content, which was created by the user for training artificial intelligence Models. The wide and varied Reddit data collection, which covers a wide range of topics, makes it particularly suitable for this purpose.