Should I Buy Reddit (RDDT)? — Finance YouTuber Analysis

The YouTuber is considering opening a position in Reddit if there's a broader market selloff. He views Reddit as undervalued, a pure beneficiary of AI, the sixth most visited website globally, growing quickly with increasing free cash flow, and expects significant AI licensing deals. He believes it could become a $100 billion company.

“And so if we do have a broader selloff over the next couple of days, maybe next couple of weeks, then yes, Reddit is definitely one of those names where I could look at it and say, you know what, maybe it is time to open a position in that company.” — ▶ 8:50

The YouTuber sees Reddit as a rapidly growing and increasingly profitable company, currently undervalued at $33.3 billion. He highlights its strategic positioning as a foundational resource for AI models, which he believes the market is not fully pricing in, and suggests it could become a $100 billion company.

“I don't think the market is fully pricing that in. And of course, again, this is just a company worth $33.3 billion. Could this potentially be a hundred billion company in the future? I think so.” — ▶ Watch clip

The YouTuber is considering buying Reddit, noting its rapid growth in revenue and free cash flow, despite recent stock performance. They highlight its potential for AI licensing deals due to its unique human-generated data. While acknowledging it's not a deep value play, they see it as the 'cheapest of the bunch' among their potential buys.

“Moving on to the next one, and that's Reddit. Reddit year to date is down 40.2%, but over the past 12 months, it's still up 38.3%.” — ▶ 10:00