Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [2]

Core Viewpoint - Reddit, Inc. (NYSE: RDDT) shares have declined over 40% from their all-time highs, presenting a significant buying opportunity for long-term value investors [1] Company Analysis - Reddit is characterized as an ultra-high-quality business, meeting various investment criteria [1] - The decline in share price is viewed as a temporary setback, with potential for recovery and growth in the long term [1] Investment Perspective - The current market conditions are seen as favorable for long-term investors to acquire shares at a discounted price [1]

Core Viewpoint - Reddit (NYSE: RDDT) is being initiated with a buy recommendation following a 46% pullback due to a miss in 4Q user growth despite beating EPS and revenue expectations [1] Summary by Relevant Sections - **User Growth Performance** - Reddit experienced a 39% year-over-year increase in global daily active uniques, but this was below expectations, leading to concerns about user growth [1] - **Financial Performance** - The company reported better-than-expected earnings per share (EPS) and revenue figures, indicating strong financial health despite the user growth miss [1] - **Market Context** - The analysis comes from a retired Wall Street portfolio manager with over two decades of experience in the technology, media, and telecommunications (TMT) sector, emphasizing a focus on momentum in investment strategies [1]

Core Viewpoint - Reddit Inc. has experienced a significant stock decline of 36% since its fourth-quarter earnings report, despite beating earnings and revenue expectations, primarily due to disappointing user growth attributed to changes in Google's search algorithm [1][2]. Financial Performance - Reddit reported a year-over-year revenue growth of 71% in Q4, marking the fastest growth since 2022 [6]. - The stock is currently trading at $121, down 25% year-to-date, but has seen a 159% increase over the past year [5]. Market Conditions - Broader market volatility has contributed to Reddit's stock decline, with the Nasdaq Composite experiencing a 4% drop on March 10, 2023, amid recession fears and trade uncertainties [3]. Analyst Sentiment - Loop Capital maintains a 'Buy' rating on Reddit with a price target of $210, indicating a 73% upside potential from current levels [6]. - Analysts view the recent sell-off as excessive, highlighting Reddit's strong fundamentals and growth potential [6]. Growth Drivers - Analysts expect Reddit's advertising expansion to drive future growth, with higher average revenue per user (ARPU) anticipated from enhanced ad tools and broader placements [7]. - Auction-based pricing is projected to attract more advertisers, contributing to revenue growth of 36% and an 87% increase in EBITDA this year [8].

Core Viewpoint - Reddit stock has experienced significant volatility, dropping 38% recently, but is now considered a potential buying opportunity due to its current valuation and growth prospects [5][6][11]. Company Performance - Reddit reported a 71% year-over-year revenue increase to $427.7 million, with daily users up 39% to 102 million and weekly users up 42% to 379 million [10]. - Earnings per share were $0.36, exceeding expectations, and free cash flow turned positive at $89 million [10]. Growth Projections - Analysts forecast a 50% sales growth for Q1 2025, with full-year revenue growth expected to be around 39% [6]. - Loop Capital predicts a slower revenue growth of 36% for the year but still rates Reddit stock as a buy, valuing it at $210 per share, which is 61% above its recent closing price of $130 [11][12]. Financial Metrics - Reddit is currently valued at $23 billion, or $20.4 billion net of cash, trading at 94 times its trailing free cash flow of $216 million [12]. - Free cash flow is projected to grow to $523 million this year, representing a 142% increase over 2024, indicating that Reddit's free cash flow is growing four times faster than sales [13]. Strategic Initiatives - Reddit is implementing new tools to enhance user engagement and improve advertising capabilities, which could drive higher revenue per user [7][8]. - The company is focusing on mitigating risks associated with potential revenue slowdowns due to changes in search engine rankings [6]. Market Context - The broader market has been affected by tariff-related concerns, but Reddit's business model appears largely insulated from these issues, making it a unique opportunity in the current environment [9].

Core Viewpoint - Reddit's stock has shown volatility, with a recent uptick of over 10% following a significant drop, indicating potential recovery amidst broader market concerns [1][2]. Group 1: Stock Performance - Reddit shares rose more than 10% on Tuesday, reversing a three-day slump, but remain approximately 30% below their previous close [1]. - The company's shares dropped over 15% in February due to weaker-than-expected fourth-quarter user numbers, which were impacted by a Google search algorithm change [2]. - Reddit's shares have been affected by broader market trends, with major tech companies losing over $750 billion in market value recently [3]. Group 2: Analyst Insights - A Loop Capital analyst note characterized Reddit's shares as "extremely attractive" and suggested that the recent 50% drop was excessive, highlighting the company's significant upside potential [2]. - Loop Capital managing director Alan Gould noted that despite a "risk-off market environment," Reddit has been one of the top-performing stocks over the past year, aside from its recent dip [4]. Group 3: Financial Performance - Reddit's fourth-quarter sales grew 71% year-over-year to $428 million, marking the fastest growth rate for any quarter since 2022 [5]. - The stock price increased almost sevenfold from a $34 IPO price to a peak of $230 in less than a year, driven by growing revenue and improved advertising tools [5]. - Gould emphasized that Reddit deserves a revaluation based on its recent earnings growth and future potential, particularly in narrowing the ARPU gap and data licensing opportunities [6].

The Nasdaq sell-off is making Reddit stock look cheap.Investors in Reddit (RDDT 9.75%) stock are having a terrific Tuesday, as shares rise 10.7% through 11:10 a.m. ET.Shares of the social media discussion site, which had more than quadrupled since its initial public offering (IPO) last year, topping $225 in early February, have been cut in half over the past month. That 50% haircut, however, has made Reddit stock "extremely attractive" for new investors according to investment bank Loop Capital, as The Fly ...

Content aggregator Digg is making a comeback with the help of an unlikely partner: Reddit co-founder and rival Alexis Ohanian.Ohanian and Digg founder Kevin Rose acquired the platform for an undisclosed sum. The deal is backed by venture capital firms True Ventures, where Rose is a partner, and Ohanian's Seven Seven Six. The partnership was announced Wednesday in a video post to the company's X account in which Rose called the partnership a "team-up he would have never imagined 20 years ago."Digg was founde ...

Shares of Reddit (RDDT 0.41%) were among the losers on the stock market last month after better-than-expected results weren't enough to keep the company's blistering momentum going.The social media stock has been a huge winner on the market since its IPO a year ago, but investors now seem to believe its valuation has run up far enough, especially as concerns about the broader economy are swirling around growth stocks.According to data from S&P Global Market Intelligence, the stock finished February down 19% ...

Core Viewpoint - The UK's Information Commissioner's Office (ICO) is investigating TikTok, Reddit, and Imgur regarding their use of teenage users' personal information, particularly focusing on data protection and the potential risks associated with content recommendations for users aged 13 to 17 [1][2]. Group 1: Investigation Focus - The ICO's investigation will assess how TikTok utilizes information from teenage users to deliver content recommendations [1][3]. - For Reddit and Imgur, the focus will be on their age assurance measures, including how they estimate and verify children's ages and the use of personal information [2][6]. - The regulator is responding to concerns about social media platforms' data usage and the risk of exposing young users to harmful content through recommendation algorithms [2][4]. Group 2: Algorithm and Content Concerns - TikTok's algorithm, which powers the For You Page, has been criticized for suggesting harmful content, such as eating disorders and self-harm, to new teen accounts shortly after they join [3][4]. - The ICO aims to ensure that the processes used by these platforms are robust enough to protect children from potential harm, including addictive practices and inappropriate content [4][5]. - The Information Commissioner, John Edwards, emphasized that the investigation is not targeting TikTok specifically but is motivated by the platform's growth among young users and the associated risks [5][6]. Group 3: Regulatory Process - The ICO will investigate potential data protection infringements and will seek input from the platforms if evidence of breaches is found before reaching a conclusion [6]. - The regulator hopes to derive lessons from these investigations that can be applied across the industry to enhance data protection practices [6].