REDDIT

REDDIT (#REDDIT) weekly special report based on 1.00 Lot Calculation:

REDDIT: MARKET SHARE & INDUSTRY

• SOCIAL MEDIA MARKET SHARE: Facebook continues to lead with around 66% of the market, followed by Instagram with 12%, Pinterest with 8%, and X with 6%. YouTube takes up around 5%, while Reddit takes up around 1%. This is according to gs.statcounter.com.

• Reddit operates in a highly competitive social media environment, but its unique position as a community-driven platform sets it apart from many of its peers.

• TIKTOK UNCERTAINTY IN THE U.S. TO HELP REDDIT AD BUSINESS? Analysts suggest that even a 1% shift in advertising spend from TikTok could result in a 10% increase in Reddit's revenue projections.

REDDIT: COMPANY OVERVIEW

• COMPANY: Reddit is the 6th most visited website on the internet with over 6.1 billion monthly visits, and 5th most popular social media provider. Reddit allows anonymous posts, supporting honesty and transparency. Interestingly, posts can be voted for by the community and the posts with the highest votes generate greater authority.

• ACTIVE USERS: Reddit averages 97.2 million daily active users, up from 70 million in 2023, and 1.36 billion active monthly users, up from 850 million in 2023. It also has approximately 365.4 million weekly active users as of Q3 2024. This acceleration in user growth is attributed to improved user experience, enhanced onboarding processes, and better content personalization and relevance.

• MONEY- GENERATION: Reddit makes money through advertising on the site. In previous quarter, it generated a quarterly ad revenue of around $315 million. The company also offers premium packages of around $5.99 a month.

• MARKET CAP: $35.5B.

REDDIT: EVENTS

• EVENT (WEDNESDAY, FEBRUARY 12, AFTERMARKET): Q4 EARNINGS REPORT. Reddit expects to publish $405.3 million in revenues, up 16% from the previous quarter ($348.4 million). The company is expected to release $109.7 million in Net Income up 267% from the previous quarter ($29.9 million). In addition, the company is expected to post Earnings Per Share (EPS) of $0.24, which would be an increase of 50% from the previous quarter ($0.16).

• LAST TIME (Q3 EARNINGS RELEASED ON OCTOBER 29TH 2024): On October 29th, aftermarket, the social media company posted its financial results for the third quarter. Reddit reported a Net Income of $29.9 million, up expected -$13.78 million. Similarly, reported revenue came in at $348.35 million, which was up by 11% from analyst expectations ($312.83M). Further, Reddit’s Earnings per Share were $0.16 versus -$0.08 expected. Daily Active Uniques (DAUq) for the quarter increased 47% to $97.2 million from same period in 2023, while the Ad revenue increased 56% year-over-year to $315.1 million. STOCK PERFORMANCE ON OCTOBER 30, 2024: The stock rose 41.97%.

REDDIT: ARTIFICIAL INTELLIGENCE

• REDDIT CUTS A DEAL WITH AI COMPANIES:

  • GOOGLE - Google is getting AI training data from Reddit as part of a new partnership between these two companies. A deal reportedly worth $60 million per year will give Google real-time access to Reddit’s data and use Google AI for Reddit’s search, according to Bloomberg.

  • OpenAI – Reddit announced a partnership with OpenAI on May 2024, that allows the ChatGPT maker to train its artificial intelligence models on Reddit content.

• LICENSING DATA STRATEGY - Reddit has strategically capitalized on the AI boom by licensing its extensive collection of user-generated data to train artificial intelligence models. This move has aligned the platform with the surging investor interest in AI. Analysts project that data licensing could potentially contribute up to $400 million in revenue over time, providing a high-margin complement to Reddit's advertising business.

REDDIT: PRICE ACTION

• REDDIT’S STOCK HAS CLIMBED MORE THAN 540% SINCE MARCH 2024 IPO. The company capitalized on this popularity when it launched its initial public offering (IPO) on March 21st 2024 at $34 a share. Since then, Reddit stock has risen by more than 540%. However, the stock price could decline.

• REDDIT HIT AN ALL TIME HIGH OF $220.20 (February 5th, 2025).

REDDIT, February 6th, 2025
Current Price: 220

Example of calculation base on weekly trend direction for 1.00 Lot¹

REDDIT

1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 12:45 (GMT) 6/2/2025

There is a possibility to use Stop-Loss and Take-Profit.

• You may wish to consider closing your position in profit, even if it is lower than suggested one.

• Trailing stop technique could protect the profit.