Episode Details

In today’s episode, Shawn O’Malley and Daniel Mahnke break down Reddit (ticker: RDDT), an emerging social media giant. Reddit became profitable for the first time in 2024, and as its user growth accelerates, the company appears to be achieving economies of scale, making it a very promising business.

In this episode, you’ll learn why Reddit is such a unique social media platform, how it cultivates community and authenticity, why the company is surprisingly tied to the hype around AI, what Reddit can do to further improve its business quality, plus so much more!

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IN THIS EPISODE, YOU’LL LEARN

00:00 - Intro

02:12 - Why people come to Reddit and why the platform might be very durable.

04:04 - Why Reddit is such a unique social media platform.

30:15 - How the company is tapping into AI models’ demand for data to earn licensing fees.

35:12 - What Reddit is doing to revamp its advertising business.

36:28 - What underpins the symbiotic relationship between Google and Reddit.

51:12 - How Reddit uses language translation to make its content accessible to anyone worldwide.

51:35 - How Reddit can grow internationally.

1:14:50 - What is Reddit’s intrinsic value per share.

1:19:36 - Whether Shawn & Daniel add RDDT to The Intrinsic Value Portfolio.

And much, much more!

*Disclaimer: Slight timestamp discrepancies may occur due to podcast platform differences.

BOOKS AND RESOURCES

• Get smarter about valuing businesses in just a few minutes each week through our newsletter, The Intrinsic Value Newsletter.
• Join The Investors Podcast’s subreddit.
• The Quartr blog’s coverage of Reddit’s business model and IPO.
• Reddit management’s Q4 earnings AMA.
• Reddit CEO’s interview with the WSJ.
• Check out our previous Intrinsic Value breakdowns: AutoZone, Alphabet, Ulta, John Deere, and Madison Square Garden Sports.
• Check out the books mentioned in the podcast here.
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