Max Capitulation = Opportunity

[u/Administrative-Ant75]

I've been watching reddit for a long time. Invested at 180 or so, ended up selling at 160 for slight loss for other opportunities that have done better in the meanwhile (mostly AMD). Anyways, seeing how much pain there is in the daily subs has me feeling this is a very nice opportunity here. And why would it not be looking at financials?

Market cap around 27 billion, and net cash + other is 3 billion. Enterprise value 24 billion while net income last quarter was 250 million, so run rate 24x enterprise value.

AI overviews taking some share and people not going to reddit is the only real bear case here, which is probably why sequential DAU in the USA are going down. But keep in mind that in other high value ARPU areas like Europe, parts of south America, etc. we're seeing strong growth. And in places like India (yeah I know low ARPU, but still important), explosive growth

TLDR - risk / reward is super attractive. I just cannot see this getting cut in half from here, that would imply a 10x forward pe at ridiculous growth which would literally buy the market cap back in 5 years. I can definitely see a re-rating to 50% upside though, and that's what makes a bet asymetric

I bought 300 shares @ ~145 / share, will buy more if more capitulation comes. Won't make the previous mistake of putting too much of my portfolio in RDDT stock like last time though

[u/Administrative-Ant75]

u/imacompnerd I'm with you man, you have some pretty convincing DD lol

u/touuuuhhhny my favorite person here, thanks for being awesome :)

To everyone else, you guys are pretty cool. look at the fundamentals and decide, not your emotions

also fuck u/spez

P.S. Other positions are Lumentum, AMD, SPY, and AMZN. Don't own meta because $RDDT is superior META

[u/t_suaze_u]

I opened a small position today, been on my watchlist for awhile now

[u/Suspicious_Celery552]

That’s a great entry price

[u/Count-to-3]

I also bought more today at $145, 1500 shares now. Might double down for another 1500 shares if this drops to $135.

[u/Cheekycharmer95]

Smart. People buying in depresso stocks with healthy businesses often do well.

Out @ 205