https://www.reddit.com/r/wallstreetbets/comments/1j61s5v/rddts_future_after_40_drop/
created by AnimateDuckling on 07/03/2025 at 22:10 UTC
404 upvotes, 122 top-level comments (showing 25)
I have a position in Reddit, it’s not anything that will “destroy” me if it bombs. But of course I don’t generally like throwing away money if I can avoid it.
Currently the whole market is down a lot for mostly geo political reasons but Reddit has been hit especially hard and so I wanted to hear others thoughts here if they think it is worth holding and waiting out, or if they expect it to just drop to an IPO price.
Dropping 10% in two days is rather extreme and I do not personally understand what’s driving the specific intensity here. so I am hoping someone can illuminate me with potential theories.
Comment by VisualMod at 07/03/2025 at 22:10 UTC
1 upvotes, 0 direct replies
┌─────────────────┬──┬──┬──┬──┐ │ **User Report** │ │ │ │ │ ╞═════════════════╪══╪══╪══╪══╡ └─────────────────┴──┴──┴──┴──┘
Comment by Life-Western at 07/03/2025 at 22:42 UTC
892 upvotes, 9 direct replies
its up 135% in 6 months.
Comment by BroadCommon6230 at 07/03/2025 at 22:16 UTC
240 upvotes, 3 direct replies
I’m holding until it gets put in the S&P 500
Comment by Smurf_Crime_Scene at 07/03/2025 at 22:37 UTC
52 upvotes, 4 direct replies
I am waiting for local targeted ads, ads targeted to specific subreddits to purchase advertisements. I would love to advertise on reddit.
What FB is good at is catering to small advertisers.
Reddit has immense potential.
Comment by Tendie_Tube at 07/03/2025 at 22:33 UTC
259 upvotes, 11 direct replies
DO NOT PAPER HAND. Thank me in 10 years.
RDDT is at the same point in the enshitification cycle where Facebook was 10-15 years ago. As user growth naturally tapers down, they'll throw on more and more ads and influencer content, until it looks like... FB today. Profits will go to the moon. UX will suck but investors won't care.
Look, this isn't some technology that may or may not work out. It's a well-worn path in the tech industry.
The stock is tanking because it has negative 12 mo earnings at this phase in its cycle, and because the AI bubble is popping in light of China beating all the US stock market darlings. Keep in mind that RDDT is sitting on a gold mine of data: real life users asking advice to solve problems for the past 20 years. Any AI capable of regurgitating a summary of those data will be salable.
Comment by rcbjfdhjjhfd at 07/03/2025 at 22:15 UTC
157 upvotes, 8 direct replies
If you need the money in like 1-3yrs pull it out. If u need it in like 3-30yrs dca down.
It’s dropping because it’s a growth stock and growth stocks perform especially poorly during economic downturns.
Comment by HighwayExotic2808 at 07/03/2025 at 22:29 UTC
38 upvotes, 1 direct replies
Tough call…like someone said earlier, if you’re gonna need the money soon then sell the next time it pops up a bit as you probably won’t get that 40% back soon. It’s not a piece of shit like SNAP and given META’s market cap (Yes there are other components like Quest but Facebook and IG still make up a big part of that valuation) would say there is long term potential. They can absolutely fill this site with ads and make more money, the Google partnership gets it more search exposure and the AI play is interesting. RDDT is one of the handful of social media platforms I think is actually useful at this point. There’s too much slop online, and RDDT offers niche communities that actually have some real advice (even if some of it wildly bad) rather than the same surface deep shit published across 10 listicles. If they actually paywall some community content too, there could be some additional upside. Only issue becomes how many active users you lose doing that
Comment by InevitableAd2436 at 07/03/2025 at 22:17 UTC
61 upvotes, 2 direct replies
I’ve been buying more
Comment by throwaway_0x90 at 07/03/2025 at 22:20 UTC
90 upvotes, 3 direct replies
Here you go:
https://www.reuters.com/technology/reddit-forecasts-quarterly-revenue-above-estimates-2025-02-12/
https://www.reddit.com/r/stocks/comments/1hs2mnj/rddt_long_thesis_heading_into_2025/
https://www.wired.com/story/reddits-sale-user-data-ai-training-draws-ftc-investigation/
https://www.reddit.com/r/DataHoarder/comments/1ipf5ua/reddit_plans_to_lock_some_content_behind_a/
TLDR; Buy the dip, I see no fundamental change in Reddit's situation.
AI isn't going to disappear, AI is very hungry, Reddit is AI's main meal, paywalls will make money.
Comment by a_case_of_everything at 08/03/2025 at 01:38 UTC
29 upvotes, 1 direct replies
$52 average price here. Holding cause once the gonewild subs are paywalled shits gonna moon.
Comment by Rabbidextrious at 08/03/2025 at 00:41 UTC
11 upvotes, 0 direct replies
I like Reddit I like the stock I dont own it and I want in under 100 thats my take
Comment by reddit-abcde at 08/03/2025 at 00:50 UTC
11 upvotes, 0 direct replies
it is a small dip in the long run
Comment by dtlabsa at 08/03/2025 at 05:13 UTC
20 upvotes, 2 direct replies
I love Reddit. Just a few weeks ago I was visiting my parents in Florida. My wife had already fallen asleep so I went to the bathroom to look at some porn. To my dismay, my favorite porn site was blocked, and my second favorite site was asking me to upload a photo of my ID to verify my age. I thought to myself, WWJD in a situation like this? Going back into the room and risk waking up my wife looking for my ID to upload to a totally legit and safe porno site? No, He would log onto reddit, hit the anonymous browsing tab, and type in hotwife. So not only does reddit allow me to satisfy all of my social needs by being unsocial in real life, it satisfies my physical needs when I'm visiting my elderly parents in Florida. Now on the stock, I probably wouldn't touch it until its in the double digits.
Comment by Cerebral-Parsley at 08/03/2025 at 03:21 UTC
9 upvotes, 0 direct replies
I use Reddit every single day and its been a great ride up. Nothing bad has happened to the company except for the market going down.
Comment by jglover82 at 08/03/2025 at 01:17 UTC
33 upvotes, 2 direct replies
ask yourself if people are going to stop using reddit during a recession
Comment by GoldenSheep1 at 08/03/2025 at 04:31 UTC
15 upvotes, 0 direct replies
im going to come back to this post later when RDDT is above 300$/share and laugh at all the regards that made fun of RDDT
Comment by cpapp22 at 08/03/2025 at 00:01 UTC
8 upvotes, 1 direct replies
I’m down 65% on calls. Come Monday I’ll decide if I need to sell - wouldn’t ruin me or anything but it would effectively make my YTD neutral if it expires worthless (April 17)
Comment by andyman268 at 08/03/2025 at 00:23 UTC
7 upvotes, 0 direct replies
A lot of the growth stocks I’m watching are down 30-40% on the month. Significant correction that’s not really visible on the index. Could form a bottom soon. People are crazy if they think the AI revolution has peaked.
Comment by [deleted] at 07/03/2025 at 22:29 UTC
7 upvotes, 1 direct replies
[deleted]
Comment by Ryu6912 at 07/03/2025 at 22:50 UTC
21 upvotes, 3 direct replies
It’s completely bullshit the stock is getting targeted for shorting or something like that. What stock loses 50%/$90 (over 20b) of its market cap in a month because it had less than 5% expected new users??? (statistically insignificant btw p-value test) The price action this WEEK mind you is as if they declared fucking bankruptcy. Since Feb 26 it’s been smacked down HARD from $170 every time it tried to recover and it was most obvious this week as it hit twice then got smacked the next day. I understand this has been a bad week for stocks but RDDT stock has been reacting disproportionately and I can feel it in my balls that something is wrong.
Comment by BillysCoinShop at 08/03/2025 at 00:47 UTC
4 upvotes, 1 direct replies
The intensity is basically a shift from government backing stock market, which has fueled a dumping of crypto, stocks, and anything related to easy money. Bessent literally said this admin "does not care about the stock market" which basically means they are going to prioritize the bond market.
This is also on the heels of the most expensive market in many years, everything was ridiculously expensive, PE ratios were aths everywhere you looked, Tesla being a massive outlier.
So this spooked the market and people decided to take earnings/cut losses and wait for a dip or better an interest rate cut from Powell this summer.
Comment by echoes-in-an-instant at 08/03/2025 at 02:07 UTC
5 upvotes, 0 direct replies
Buy more.
Comment by developerincicode at 08/03/2025 at 02:48 UTC
4 upvotes, 1 direct replies
Looks like a long hold.
Comment by AlmostAsianJim at 08/03/2025 at 00:07 UTC
9 upvotes, 0 direct replies
How come no one questioned the run from $50 to $200? But now questioning the run from $200 to $130? It elevatored up, now it’s elevatoring down. Simple as that. It was a momentum trade that’s wound down.
Comment by Cagel at 08/03/2025 at 00:25 UTC
7 upvotes, 0 direct replies
I’m more surprised how fast it shot up, than it dropping down. Can’t even really say it’s a 40% drop because it never held at those higher levels for any substantial amount of time.