Reddit (RDDT -6.31%) inventory has been on a tear this yr. The social media platform and information aggregator’s share value has rocketed 62% increased throughout 2025’s buying and selling, due to rising alternatives within the synthetic intelligence (AI) area.
In the meantime, Nvidia (NVDA -3.27%) has gained roughly 32% yr up to now, however remains to be up an unbelievable 678% during the last 5 years. May Reddit be within the early levels of delivering an Nvidia-like run?
Picture supply: Getty Photos.
Is Reddit inventory on the verge of an unbelievable successful streak?
Reddit’s share value has seen large positive aspects since its March 2024 IPO, as the corporate’s social platform has turn out to be an more and more standard information supply for coaching massive language fashions (LLMs). With its final quarterly report, Reddit reported a gross sales improve of 78% yr over yr to achieve $500 million. In the meantime, the enterprise posted a stellar gross margin of 90.8%. The corporate additionally guided for gross sales to return in between $535 million and $545 million within the present quarter — suggesting that sturdy gross sales momentum is poised to proceed within the close to future.
Reddit inventory now has a market capitalization of roughly $49.5 billion and is valued at roughly 24 occasions this yr’s anticipated gross sales. The corporate’s platform has turn out to be one of many prime locations for information used to coach LLMs, and it appears to be like like this can proceed to be true within the close to time period.
Whereas matching Nvidia’s inventory efficiency during the last yr is a tall order, there are good causes to suppose that Reddit is poised to maintain crushing the general market. For risk-tolerant buyers in search of doubtlessly explosive AI performs, Reddit inventory appears to be like like a worthwhile portfolio addition proper now.
Keith Noonan has no place in any of the shares talked about. The Motley Idiot has positions in and recommends Nvidia. The Motley Idiot has a disclosure coverage.
