Accrued Interest (Simeon M.) (@simeonmcmillan): "@Jimmy Investor is correct here about Reddit. Too many investors ignore the fact that Google is in the driver seat here. Without Google search sending traffic, Reddit can't grow. Plus, Google doesn't need to pay up for super expensive licensing deal because Google search can sti…"

Make money doing the work you believe in

Jimmy Investor is correct here about Reddit. Too many investors ignore the fact that Google is in the driver seat here. Without Google search sending traffic, Reddit can't grow. Plus, Google doesn't need to pay up for super expensive licensing deal because Google search can still scrape a whole lot of data from Reddit.

I'm putting together some notes on the short case because I think more investors need to have this spelled out. Thanks Jimmy for being contrarian and smart on this one. $RDDT

Jimmy Investor

Reddit ($RDDT) reported a phenomenal result yesterday, and yet shares are down -13% in the pre-market...

Net Revenue came in at $805M (vs. $730M expected, +61% y/y), while EPS reached $1.25 (vs. $0.95 expected, +178% y/y). DAU came in at 130.3M, growing +18% y/y, with a Gross Margin of 91.3%.

The reason for the decline was CEO Steve Huffma…

Aug 1

6:53 PM

Make money doing the work you believe in

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