2024-07-19 06:00:02 ET
Summary
- Reddit stock has delivered a 30% return to shareholders since going public in March, outperforming the S&P 500.
- Reddit's dual share structure offers an intriguing twist on a concept that has caused concern for investors in the past.
- We cannot help but wonder about the sustainability of today's valuation, even with robust user growth.
Background
Ever since the public market debut of Meta's ( META ) Facebook platform, investors have raced to discover the 'next big thing.' For a while, Snap Inc. ( SNAP ) seemed to hold promise as a rival platform that could deliver monster returns to investors. Twitter (now X, and privately held) engendered the same feelings. Ultimately, however, both of those platforms failed to generate the same degree of return consistently for shareholders. One late-comer to the social media public market is Reddit ( RDDT )....
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For further details see:
Reddit: Unpacking This Newly Listed Tech Company