Author presents a bullish RDDT value-and-growth thesis based on accelerating ad revenue, high margins, and expected AI licensing renewals.
RDDT — LONG The author argues RDDT is a value-and-growth play because its core ad revenue engine grew 74% yoy and overall revenue growth above 40% compresses a forward P/E of ~35 to a PEG below 1. High gross margins above 90% and expanding net margins support the earnings growth. Main stated risks include overreliance on Google search, SBC dilution, competition, and a US growth slowdown.
So in effect the core revenue engine has grown 74% yoy, while the ‘other’ portion of revenue has been mostly flat.
RDDT — LONG The author claims RDDT's AI licensing deals with Google/OpenAI are likely to be renewed soon, potentially shifting to usage-based pricing across pretraining, post-training, grounding, and live search. This would add nearly pure-profit high-margin revenue and increase EPS. The author lists overreliance on Google search and competitor platforms as broader thesis risks.
I think a renewal is inevitable, and timing could be very soon, with also a PAYG model, for the four phases of LLM’s u/spez said: pretraining (probably the flat fees from before), post-training, grounding, and live index searching.
This Reddit post, published June 25, 2026, features u/Flimsy-Philosophy-42 discussing RDDT. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/Flimsy-Philosophy-42 · Tickers: RDDT