From Nasdaq: 2024-11-15 03:02:00

Bitcoin has surged past $80,000, hitting all-time highs. Investors are optimistic about the future of crypto, with a focus on companies like Robinhood and Coinbase. Axon is also feeling the euphoria, thanks to its recurring revenue and potential new businesses. Reddit is discussed as a highflier in 2024, with valuable data for language models.

With the crypto rally continuing post-election, Bitcoin is currently near all-time highs at $84,000. Expectations are high due to potential regulatory changes under the new administration. Investors should remain cautious during moments of maximum enthusiasm, as regulatory uncertainty still exists. The future of digital assets like Bitcoin depends on regulatory decisions and market conditions. Crypto investors are optimistic about a friendlier stance from the new administration, with increased market access. Bitcoin ETFs provide exposure without excessive risk, but caution is advised in times of hysteria. Diversifying assets and purchasing strategically can help navigate volatility. It’s important to be patient and avoid overexposure.

Investors following companies like Coinbase and Robinhood should consider what normal earnings and revenue growth look like, rather than extrapolating recent hyperbolic trends. Understanding genuine growth can help avoid unrealistic expectations. Exxon’s recent earnings report showed impressive revenue growth, but caution is advised to avoid getting caught up in euphoria. Exxon’s Q3 and Q4 bookings are set to surpass 2023’s total. Stock is up 140% year to date with a 160x earnings valuation. Future contracted revenue for over three years tops $7.7 billion. The tech company thrives on recurring revenue and AI benefits like auto transcribe services and drone detection. The potential for vast data collection raises questions about valuation and future growth. In a discussion between Dylan Lewis and Tim Beyers, they advise investors to buy into Exxon in small bursts over time, warning to be cautious. Motley Fool analysts explore Reddit’s successful increase in daily unique users by 50%, attributing Reddit’s growth to its cost-effective and highly targeted advertising, making it more attractive than Twitter. Reddit’s engagement and user growth have been driven by international expansion, improved user experience, and viral events like the GameStop short squeeze. CEO Steve Huffman highlights Reddit’s potential in data licensing, leveraging one of the largest corpuses of human information to train artificial intelligence models. Reddit’s business potential is rising with licensing deals like the 203 million deal with Google and a 50 million partnership with OpenAI. Financial institutions and social listening services are also interested in Reddit’s AI training data, creating a high margin growth opportunity.

Content publishers like Newscorp and Associated Press are benefiting from licensing their content to AI companies like OpenAI and Microsoft. These publishers are reaping rewards from licensing their content for AI training data, creating a win-win situation for both parties.

While publishers are initial winners, big tech companies like Google could be the long-term victors in the AI training data race. Companies like Google, Amazon, and Microsoft are heavily investing in content infrastructure to train AI models, with hopes of a significant return on investment in the future.

Reddit’s revenue growth rate from 2018-2023 was 52%, projected to compound at a 35% rate. The forward total enterprise value to total revenue multiple is just under 10, a high valuation, but reasonable given the projected growth rate. Reddit must hit these growth numbers for the high price tag to make sense.

Reddit’s revenue per active user is around $3, much lower than Meta’s $12. Meta’s high monetization is due to a diverse global user base and rich user data. Reddit, with mostly anonymous users, may have a lower ceiling in terms of monetization compared to larger social media platforms.

Despite lower revenue per user, Reddit’s engagement is high, with users frequently engaging daily. While Meta properties have more targeted ads due to personal data, Reddit’s user base is unique with a focus on discussion and anonymity. Reddit, a social media platform, offers unique growth opportunities for advertisers with diverse ad formats. While not as big as Meta, Reddit has potential to carve out its niche in the market. Investor interest in Reddit stock is growing, especially after a strong earnings report and potential for future growth through data licensing.

As an investor, Sanmeet Deo finds Reddit’s growth opportunities intriguing and worthy of consideration. With a unique platform and potential for future growth, Reddit is on his watch list. The platform’s data licensing could be a key driver of revenue and expansion, making it a compelling investment option.

In a conversation about favorite subreddits, users discuss their interests in sports, health, fitness trends, and local food communities. Hyper-local subreddits, such as city-specific food groups, provide valuable insights and recommendations for users based on their location. These niche communities offer a wealth of information and engagement opportunities for users.

On Veterans Day, Dylan Lewis expresses gratitude for those who have served in the armed forces. Despite some businesses and schools being closed, the stock market remains open for trading. The Motley Fool reminds listeners to make investment decisions based on personal research and not solely on recommendations from the program. Personal finance content adheres to editorial standards and is aimed at providing valuable insights to listeners.



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