I’m long on $Reddit(RDDT)$ and-To The Moon - Tiger Brokers Online Investing Community - To The Moon

I’m long on $Reddit(RDDT)$ and really believe in the company’s potential, but I can’t ignore that the current valuation looks way too high.

For context, I originally bought 100 shares at $116 and started selling gradually at $130, $135, and $178. I saw the company’s growth potential, so I bought back at $200, and now I hold 40 shares with a BEP of $159. I plan to buy more in the future because I believe in the long-term vision. My personal (and totally pulled-out-of-my-ass) prediction is that RDDT could reach $100B market cap in 1-3 years and possibly $200B or even $300B by 2030.

That said, looking at the numbers, the current valuation seems excessive. Last quarter, they reported $29.9M in net income, and assuming they keep that up, that’s $119.6M per year. With ~120M shares outstanding, that gives a market cap of ~$35B and a P/E ratio close to 300. Even if net income improves, that’s a crazy high multiple. Expectations are through the roof.

Right now, I’m sitting at $2.5K in realized gains and $2.6K in unrealized gains. I won’t be selling before earnings on Feb 12, and I don’t plan on selling for years. But I do think the market is pricing in a ton of future growth, and even though I regret selling early (because I’d have 2x my initial money by now), that doesn’t change the fact that this valuation looks stretched.

Curious to hear other opinions, are we looking at long-term moon potential or just a temporary hype bubble?

SHOP Drops Post-Earnings: How Do You Expect RDDT & UPST?

This week, several growth stocks are set to release their earnings. Among them, standout names like Upstart and Reddit delivered a beat and rise last earnings season, surging over 20% in a single day. ------------ Which one has the best chance of replicating last quarter’s rally? Lyft's peer Uber reported earnings last week. What does this signal for Lyft's earnings? Meanwhile, AI-driven fintech company Affirm soared 21% last week. Although its business differs from Upstart, does this indicate strong demand for AI financial services? Which growth stock earnings would you bet on this season?

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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What does this signal for Lyft's earnings?\nMeanwhile, AI-driven fintech company Affirm soared 21% last week. Although its business differs from Upstart, does this indicate strong demand for AI financial services?\nWhich growth stock earnings would you bet on this season?","image":"https://community-static.tradeup.com/news/27e65947380e8ac35635d0598fffcde9"}],"images":[],"coverImages":[],"html":"<html><head></head><body><p>I’m long on  <a data-mention-id=\"RDDT\" class=\"teditor-mention\" data-mention-name=\"Reddit\" href=\"https://ttm.financial/S/RDDT\">$Reddit(RDDT)$</a> and really believe in the company’s potential, but I can’t ignore that the current valuation looks way too high.</p><p style=\"text-align: start;\">For context, I originally bought <strong>100 shares at $116</strong> and started selling gradually at <strong>$130, $135, and $178</strong>. I saw the company’s growth potential, so I <strong>bought back at $200</strong>, and now I hold <strong>40 shares with a BEP of $159</strong>. I plan to buy more in the future because I believe in the long-term vision. My personal (and totally pulled-out-of-my-ass) prediction is that RDDT could reach <strong>$100B market cap in 1-3 years</strong> and possibly <strong>$200B or even $300B by 2030</strong>.</p><p style=\"text-align: start;\">That said, looking at the numbers, the current valuation seems excessive. Last quarter, they reported <strong>$29.9M in net income</strong>, and assuming they keep that up, that’s <strong>$119.6M per year</strong>. With <strong>~120M shares outstanding</strong>, that gives a <strong>market cap of ~$35B</strong> and a <strong>P/E ratio close to 300</strong>. Even if net income improves, that’s a crazy high multiple. Expectations are <strong>through the roof</strong>.</p><p style=\"text-align: start;\">Right now, I’m sitting at <strong>$2.5K in realized gains</strong> and <strong>$2.6K in unrealized gains</strong>. I won’t be selling before earnings on <strong>Feb 12</strong>, and I don’t plan on selling for years. But I do think the market is pricing in <strong>a ton of future growth</strong>, and even though I regret selling early (because I’d have <strong>2x my initial money</strong> by now), that doesn’t change the fact that this valuation looks stretched.</p><p style=\"text-align: start;\">Curious to hear other opinions, are we looking at long-term moon potential or just a temporary hype bubble?</p></body></html>","htmlText":"<html><head></head><body><p>I’m long on  <a data-mention-id=\"RDDT\" class=\"teditor-mention\" data-mention-name=\"Reddit\" href=\"https://ttm.financial/S/RDDT\">$Reddit(RDDT)$</a> and really believe in the company’s potential, but I can’t ignore that the current valuation looks way too high.</p><p style=\"text-align: start;\">For context, I originally bought <strong>100 shares at $116</strong> and started selling gradually at <strong>$130, $135, and $178</strong>. I saw the company’s growth potential, so I <strong>bought back at $200</strong>, and now I hold <strong>40 shares with a BEP of $159</strong>. I plan to buy more in the future because I believe in the long-term vision. My personal (and totally pulled-out-of-my-ass) prediction is that RDDT could reach <strong>$100B market cap in 1-3 years</strong> and possibly <strong>$200B or even $300B by 2030</strong>.</p><p style=\"text-align: start;\">That said, looking at the numbers, the current valuation seems excessive. Last quarter, they reported <strong>$29.9M in net income</strong>, and assuming they keep that up, that’s <strong>$119.6M per year</strong>. With <strong>~120M shares outstanding</strong>, that gives a <strong>market cap of ~$35B</strong> and a <strong>P/E ratio close to 300</strong>. Even if net income improves, that’s a crazy high multiple. Expectations are <strong>through the roof</strong>.</p><p style=\"text-align: start;\">Right now, I’m sitting at <strong>$2.5K in realized gains</strong> and <strong>$2.6K in unrealized gains</strong>. I won’t be selling before earnings on <strong>Feb 12</strong>, and I don’t plan on selling for years. But I do think the market is pricing in <strong>a ton of future growth</strong>, and even though I regret selling early (because I’d have <strong>2x my initial money</strong> by now), that doesn’t change the fact that this valuation looks stretched.</p><p style=\"text-align: start;\">Curious to hear other opinions, are we looking at long-term moon potential or just a temporary hype bubble?</p></body></html>","text":"I’m long on $Reddit(RDDT)$ and really believe in the company’s potential, but I can’t ignore that the current valuation looks way too high. For context, I originally bought 100 shares at $116 and started selling gradually at $130, $135, and $178. I saw the company’s growth potential, so I bought back at $200, and now I hold 40 shares with a BEP of $159. I plan to buy more in the future because I believe in the long-term vision. My personal (and totally pulled-out-of-my-ass) prediction is that RDDT could reach $100B market cap in 1-3 years and possibly $200B or even $300B by 2030. That said, looking at the numbers, the current valuation seems excessive. Last quarter, they reported $29.9M in net income, and assuming they keep that up, that’s $119.6M per year. With ~120M shares outstanding, that gives a market cap of ~$35B and a P/E ratio close to 300. Even if net income improves, that’s a crazy high multiple. Expectations are through the roof. Right now, I’m sitting at $2.5K in realized gains and $2.6K in unrealized gains. I won’t be selling before earnings on Feb 12, and I don’t plan on selling for years. But I do think the market is pricing in a ton of future growth, and even though I regret selling early (because I’d have 2x my initial money by now), that doesn’t change the fact that this valuation looks stretched. Curious to hear other opinions, are we looking at long-term moon potential or just a temporary hype bubble?","highlighted":1,"essential":1,"paper":1,"likeSize":0,"commentSize":0,"repostSize":1,"favoriteSize":0,"link":"https://ttm.financial/post/401951582998904","repostId":0,"isVote":1,"tweetType":1,"viewCount":393,"commentLimit":10,"likeStatus":false,"favoriteStatus":false,"reportStatus":false,"symbols":["RDDT"],"verified":2,"subType":0,"readableState":1,"langContent":"EN","currentLanguage":"EN","warmUpFlag":false,"orderFlag":false,"shareable":true,"causeOfNotShareable":"","featuresForAnalytics":[],"commentAndTweetFlag":true,"andRepostAutoSelectedFlag":false,"upFlag":false,"length":1191,"optionInvolvedFlag":false,"xxTargetLangEnum":"ORIG"},"commentList":[],"isCommentEnd":true,"isTiger":false,"isWeiXinMini":false,"url":"/m/post/401951582998904"}