RDDT shows 91.27% gross margin, $261M FCF, and almost no long-term assets/capex. A capital-light, cash-generative tech business could be attractive after a 20% post-earnings drawdown. Author is seriously considering a small RDDT position as a defensive side bet. Google traffic dependence, AI-related competitive pressures, revenue concentration, and post-earnings volatility.
RDDT shows 91.27% gross margin, $261M FCF, and almost no long-term assets/capex. A capital-light, cash-generative tech business could be attractive after a 20% post-earnings drawdown. Author is seriously considering a small RDDT position as a defensive side bet. Google traffic dependence, AI-related competitive pressures, revenue concentration, and post-earnings volatility.