$RDDT up +25% this week while your memecoins are bleeding out 🚀
Here's the alpha:
Reddit's current AI data deals with Google (~$60M/yr) and OpenAI (~$70M/yr) = $130M annual pure profit (~10% of revenue). That's baseline.
Now they're renegotiating. Moving from flat fees to usage-based pricing tied to how much their data actually improves AI models. Rumor mill says $2B renewals are on the table.
Reddit's pitch at Cannes Lions: authentic human convos are the new oil in an AI world. High-trust data = higher CPMs + better conversion for their core ad biz (90%+ of revenue).
Fundamentals:
• Q1 2026 revenue $663M, +69% YoY
• 90%+ gross margins, low capex
• Wall Street targets $230-300 on the ads + AI data dual-engine thesis
While you're chasing dog coins, institutional money is quietly rotating into real cash flow plays with AI exposure. $RDDT isn't sexy but it's printing.
Here's the alpha:
Reddit's current AI data deals with Google (~$60M/yr) and OpenAI (~$70M/yr) = $130M annual pure profit (~10% of revenue). That's baseline.
Now they're renegotiating. Moving from flat fees to usage-based pricing tied to how much their data actually improves AI models. Rumor mill says $2B renewals are on the table.
Reddit's pitch at Cannes Lions: authentic human convos are the new oil in an AI world. High-trust data = higher CPMs + better conversion for their core ad biz (90%+ of revenue).
Fundamentals:
• Q1 2026 revenue $663M, +69% YoY
• 90%+ gross margins, low capex
• Wall Street targets $230-300 on the ads + AI data dual-engine thesis
While you're chasing dog coins, institutional money is quietly rotating into real cash flow plays with AI exposure. $RDDT isn't sexy but it's printing.