u/SpreeClean

Does anyone know the CFO of Reddit? The guy's name is Drew Vollero and he was CFO for Snapchat when they went public. Long story short, he destroyed Snapchat's stock by issuing insane amounts of SBC to insiders and executives.

His biggest trick: reporting SBC as percentage of revenue

He reports SBC as declining "from 27% to 13% of revenue." The absolute dollar amount is increasing. He's using the denominator (revenue growth) to make the numerator (SBC) look like it's shrinking. It's not. It's growing. What happens when Revenue slows? you cannot grow at 60% forever.

Now this guy is running the same playbook at the Reddit that he used at Snapchat. Look at the facts: 90% of the free cash flow generated this quarter went towards NOT stock buybacks. It went towards absorbing stock based compensation and we still ended diluting shareholders. He is framing it was they're reducing the shares outstanding: FALSE. They actually diluted shares.

What's even more concerning is Reddit only spent 1 million on CAPEX. They're not interested in innovating or being aggressive. They just want to maintain status quo and collect insane amounts of stock. We got fooled because we were thinking Reddit is growing revenue by 60% (which it is) but that doesn't mean anything because the end result is it just goes back to compensating the stock packages. I was under the impression by 2030, Reddit would have around 15 billion sitting on the balance sheet. This could be used for acquisitions of other companies, buybacks, dividends. We wont have anywhere near that amount.

The management team make more from SBC than shareholders keep from FCF. The insiders' annual take exceeds our annual return. GRIFT. Someone on here said this is headed towards Snapchat like ending again. IDK if is or not but boy the blueprint looks the same.

Yes, I know this is a reddit stock thread. But the point I am trying to make is Elon is OBSESSED with the stock price of Tesla and SpaceX. I used to watch interviews of him depressed when Tesla would tank. The guy is invested with his heart and soul into the company and does everything possible to deliver value for shareholders.

Now compare that to our management team at Reddit and its the complete opposite. They're using the stock as a personal ATM and the shareholders are left holding the bag. These guys do not care about us. Almost all of the FCF is going towards off-setting dilution from SBC sales. That money should be going towards reinvesting into the business and growing and being agressive but no.

I've seen a few of you saying to stop talking about Jen W(r)ong on this thread. Not going to happen.

Here are the facts:

- She has ~900K+ shares remaining plus 36K in a trust. At her current pace of ~39K shares/month, she isn't even halfway done. This overhang doesn't clear until late 2027 at the earliest.

- Every month around the 15th-18th, a new Form 4 drops and resets whatever momentum the stock built. Last week was the perfect example — S&P 500 inclusion catalyst immediately killed by another filing.

- The say-on-pay vote is non-binding and Huffman controls the voting power through his Class B shares, so the normal governance checks don't apply here.

- Go watch the last earnings call. She showed zero urgency and zero conviction about the growth story. Just going through the motions while cashing $6-8M checks every 30 days.

Ad revenue grew 74% last year. H1 FCF was $572M. The business is executing. The stock can't reflect it because one executive is treating it as a personal ATM on a fixed schedule. That's not a sentiment problem — it's a governance problem.

Our voices need to be heard.

Hey Folks,

Looking to start a discussion on DAUs. Wouldn't it be a good thing if we cut Google off completely? If Google is using our data to give the answer right away, the user has no incentive to click on Reddit or explore the platform.

Thoughts?

Also, Huffman and Wong are scheduled to sell every month until 2027. It looks like Jenn Wong will be looking to jump ship once she cashes out on 200 million. This is a really bad spot for investors to be in. Plus Huffman hold all of the voting stock so no one can hold him accountable or fire him. For example, after Thursday's ER, he would have gotten ripped into by a competent board of directors. But thats not the case

$805M revenue vs $730M expected. EPS $1.25 vs $0.95. FCF doubled YoY. Raised guidance above consensus. Beat on literally every metric.

Stock drops 11% AH because Huffman said search referrals were "choppy."

At ~$158 you're looking at 31x forward, PEG of 0.33, Rule of 40 score of 93. Management was buying back shares at $157.57.

I think $145-150 is the floor but curious what everyone else is seeing. Where do you think this settles?

Remember back in May when Facebook launched “Forum,” which was supposedly going to be the Reddit killer? Reddit’s stock fell nearly 18%, from about $171 to $141, and everyone acted like the sky was falling.

What happened to that thesis? Why is no one talking about it anymore?

This feels like the same recycled fear, except Google is the villain this time.

$60 million a year is not meaningful when Reddit is projected to generate roughly $4.1 billion next year. Google wants to remain the dominant player in search and AI-generated answers while paying Reddit peanuts for access to some of the most valuable real-world content on the internet.

The truth is, Google Search has deteriorated. People increasingly add “Reddit” to their searches because they want authentic answers from real people—not SEO-driven garbage.

If I’m Reddit, I’m playing hardball. I’m extracting every last dollar from Google and demanding favorable long-term terms. Google needs Reddit’s content more than Reddit needs a cheap licensing deal. Quite Frankly, Google can go kick rocks.

Reddit dropped on reports it's reconsidering its $60M/year data-licensing deal with Google. The market sees lost revenue. I see that as leverage and bargaining. Google is using Reddit's data to power AI Overviews that cannibalize Reddit's own traffic — why would Reddit keep that deal as-is? Huffman is pushing for usage-based pricing, and Wells Fargo models that renegotiated terms could lift licensing revenue toward $550M. Earnings July 30 should clarify the strategy. This looks like noise, not a thesis breaker. The new deal could be worth 10x what it is right now. This mornings hit piece needs to be investigated.

On side not, I'm beginning to have disdain towards Jennifer Wong and all of her selling. She is destroying the stock price after we get a rally every month for the past 6 months.

• PEG ratio of 0.6 — growing revenue 69% with a PE of only 42. Anything under 1.0 is considered undervalued for a growth stock, and most high-growth tech trades at 1.5–2.5x
• 47% FCF margin with basically zero capex — almost every dollar of revenue growth drops straight to cash. That's a rare combination at any stage, let alone for a company growing this fast
• $2.8B cash, no debt, $995M buyback untouched — they're going to be soaking up shares at $145 instead of $250+, which dramatically juices per-share value for anyone holding now
• 91.5% gross margins for seven straight quarters — best-in-class across the entire social/ad-tech space, better than Snap (56%), Pinterest (75%), and comparable to software companies
• FCF projected to hit ~$3.2B by 2030 — at today's $26B market cap you're paying roughly 8x 2030 FCF for a company still growing 20%+
• AI data licensing is a moat nobody else has — Google and OpenAI deals could reach $400M+ annually by 2027, and it's high-margin revenue competitors literally cannot replicate
• Forward PE in the high 20s — annualize the Q1 earnings run rate and you're paying a small premium over the S&P 500 for a company growing 10x faster
• Simply Wall St DCF puts fair value at ~$324 — implying the stock is roughly 47% undervalued right now
• The 50% drawdown is sentiment, not fundamentals — every single operating metric is accelerating while the stock goes the opposite direction. That gap usually closes

Please who has better fundamentals than RDDT AND growing at almost 70%?