NET - Reddit: Julian Lin's Top Conviction Idea
2024-04-25 14:15:00 ET
Summary
- Reddit is viewed as a meme stock but is a top conviction idea for Julian Lin due to its potential for accelerated growth and re-rating.
- Why Meta and Reddit are not a valid comparison.
- Analyst coverage of Reddit has been uneven, with some underestimating its potential for monetization and growth.
- Reddit is close to generating profitability and upcoming earnings could show strong growth rates, indicating its undervalued status.
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Julian Lin goes in-depth on his top conviction idea, Reddit (0:30). IPO quiet period recently ended, analysts' uneven coverage (4:15). Meta and Reddit - a valid comparison? (6:25). How to measure Reddit within the broader tech picture (10:30). Upcoming earnings (13:50). Sam Altman as major shareholder; curious insider IPO non-selling (16:25). Reddit very close to generating profitability (23:00). Recent large cap tech earnings (27:10).
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Transcript
Rena Sherbill: Julian Lin, great to have you back on Investing Experts. Always great to talk to you.
So, talk to us about a recent IPO that the market has reacted to a bit. What do you have to say about the company Reddit ( RDDT )?
Julian Lin: Yes. So, Reddit stock, it's quite interesting. It just IPO -ed about one-month ago. A lot of investors might view it as a meme stock, especially because the origin of meme stocks has probably come from that WallStreetBets subreddit, a community on Reddit.
And then also Reddit stock is IPO-ing right now amidst some very rich tech valuations . So, there's a lot of reasons to view it as a meme stock, but I view it as one of my top conviction ideas right now. So, I'm actually very bullish on the stock and the current valuation in spite of a lot of that negative sentiment....
Reddit: Julian Lin's Top Conviction Idea