RDDT

Reddit Inc

Social Media

Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

Investment Thesis

Reddit is one of the top 10 visited websites in the world and boasts over 100 million daily active users. They provide forum creation and moderation tools to be the easiest place on the internet to congregate and form an online community. There are over 100,000 active subreddits that discuss almost all topics under the sun that range from subreddits for world events, finance, niche topics, and more. Reddit provides a global homepage where the best content of each subreddit is aggregated and presented to global users.

Reddit has a unique monetization angle where information is gathered and aggregated by volunteers and grouped by topic. Advertising can be presented to users that are already grouped by interests and users can be effectively served ads while staying anonymous.

Reddit also is a rich content repository of text, image, and video data.

No SpaceMob spaces have been added yet.

Risks

Active Risks

Market

Google holds an enormous amount of power on Reddit's new user acquisition strategy

During the Q4 earnings call, they outlined how a change in Google's algorithm affected their daily active non logged in users metric
Added 2025-03-15

Derisked Items

Operational Deprecated

Reddit users hate advertisements, adding ads will drive people away

None

Reddit users have continued to increase while their ad revenue has also increased proving that they can place advertisements in creative ways without losing market share
Derisked 2025-03-15

Upcoming Catalysts

No upcoming catalysts.

Past Catalysts

No past catalysts.

Related Events

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Google's Content Integration: Google will integrate Reddit content more effectively across its products, aiming to provide users with more relevant information.
Reddit's API Access: Google gains access to Reddit's API for real-time content, enhancing the accuracy of information displayed in Google searches.
Concerns over Reddit's User Growth: Analyst James Cordwell raised concerns that Reddit's user growth, particularly daily active users (DAUs) from Google Search, is vulnerable to Google's algorithm changes.
Impact of Algorithm Change: Reddit experienced a decline in U.S.-based DAUs arriving via Google search in the fourth quarter.

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Ads will be hidden from an advertiser for a year

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Similar Web RDDT VS TWTR
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Avoid surprise removals - get a heads-up when creating a post if it will be removed due to karma, account age limit, or not having a verified email or phone number.
Understand community rules during post creation - Large Language Model (LLM)- powered tools scan your draft and flag potential community rule conflicts before posting—helping you avoid removals and post with confidence.
See what resonates - track your posts’ performance with real-time analytics, including views, views by hour in the first 48 hours, engagement trends, upvotes, comments, shares, crossposts, and awards received.

reddit
Paid Subreddits are coming