Should You Invest in RDDT?
Reddit stock began trading last Thursday under the ticker RDDT. Some are calling $RDDT an AI stock since the company plans to begin licensing its data for the use of large language model training. Their popular “upvote” mechanic acts as a community notes function to help validate data. This is certainly interesting, and while we don’t find Reddit to be terribly overvalued based on our simple valuation ratio, we have some concerns around how the platform plans to monetize its users. With 50% of site traffic coming from outside the U.S., but only translating to 18% of revenues, there may be some opportunity for international growth, but for now we just don’t see Reddit stock being “disruptive”.
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