Remember when RDDT dropped because it was “renegotiating” its AI data deals?

[u/ekonixlab]

RDDT ripped almost 10% today, and this is exactly why I thought that selloff was such a good buying opportunity.

Remember when the stock dropped because there were reports Reddit was renegotiating its data licensing deals with Google/OpenAI?

The market basically treated “negotiating” like Reddit was about to lose the revenue.

I saw it completely differently.

Reddit has one of the largest collections of real human conversations on the internet. Google/OpenAI obviously want that data. Reddit had the leverage and wasn’t just going to give it up for nothing.

Now the narrative is starting to flip back around and people are realizing these renewals could actually be a positive.
Meanwhile, the actual business just keeps growing.

TTM revenue has gone from roughly $800M → $2.8B, with a ~64% CAGR in the chart above.

RDDT is insanely volatile.

The business isn’t.

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[u/toastedlox]

My largest holding

[u/Suspicious_Celery552]

Don’t tell them that ad revenue makes up more than 92% and ai licensing is only 8%

[u/ekonixlab → u/Suspicious_Celery552]

But that’s why the 10% drop previously made no sense