Reddit当前300亿美元的估值相对于其增长而言偏低；几年内可能达到500-600亿美元。

Now, next up we have Reddit, a website that everyone in the world is familiar with. It's been around for seemingly ever, but the interesting thing about Reddit is as old as it is, it economically seems like a young company.

When we look at Reddit, it looks like it just started in 2020. The revenue was only $93 million. That's not a lot for one of the biggest websites in the world, but that's actually just when they went public. And it seems like Reddit really started to monetize right after going public. In 2020, the revenue started to grow dramatically, almost doubling in a single year, continuing to double, going up to $500 million in a trailing 12-month period only in 2 years.

This is substantial. Reddit obviously did something right when going public to make it so that their revenue jumped. Then over the next couple of years, revenue slowed down, and then something came along where they were able to monetize and grow revenue even faster.

Not only is it an old company with young economics, but it's also a company that seems like the last bastion on the internet for authentic conversation. In a world where everything is filled with bots and spams and scammers, and every comment section where there's a hundred bots trying to plug some crypto coin, Reddit seems like the one place left where humans still go to discuss things with other humans. Humans talking to humans is very valuable.

And Reddit is actually cited as one of the places that all the AIs want to go to get that data, the data of real humans. So, part of this revenue growth is the result of Reddit monetizing the AI companies, the Googles, the ChatGPTs, the OpenAIs, the Clauds. They all want that juicy human data. They all want to train on Reddit's comments and Reddit's website. And for that, Reddit can license out to these companies to be able to look at these conversations, and in the process they make a fortune.

That's a growing revenue stream, but the most important part of Reddit's revenue stream is their organic advertising in and of themselves. We've seen companies like Meta already be heavily specialized in advertising and monetizing their user base. Meta makes a fortune, and Reddit seems to be learning from Meta.

When you look at this revenue, the huge majority of it is driven by their own organic advertisements throughout their website. For example, if you go to a running subreddit, it'll advertise you running shoes, and Nike shoes, and On Running, and all of these different types of shoes. If you go to the Battle Station subreddit that talks about people's computer setups, you're going to get advertisements for mechanical keyboards, you're going to get advertisements for standing desks, and all different things applicable to those subreddits. And this is where the advertising can get incredibly granular. There's subreddits for virtually everything, and Reddit has advertisers for all those specific subreddits. It's an interest-based advertisement that's highly applicable to the communities in those subreddits. So, and that makes the advertising increasingly effective.

Also, the fact that Reddit has so much real traffic from real humans is also increasingly valuable. At a $30 market cap and these type of growth rates, I believe Reddit is a company that we could look back in a couple years and see it at a 50 or 60 billion-dollar market cap and still going strong.