r/stocks
I used a forgotten 1967 stock market blueprint to analyze Reddit (RDDT)
Analyzes RDDT via a 1967 framework, citing explosive growth and AI tailwinds, while awaiting technical confirmation above $190.
- Explosive fundamental growth with 69% YoY revenue and EPS jumping from $0.13 to $1.01.
- AI presents a significant tailwind for even faster future growth.
- Potential for a massive influx of diverse investor classes once key resistance is broken.
- Technical picture remains muddy and unconfirmed.
- Currently trading below key resistance levels and needs to reclaim $190.
Most investors see Reddit as either a social media stock, an AI data play, or just another expensive growth story.
But when I ran RDDT through a framework from a largely forgotten 1967 book (Stock Market Blueprints by Edward S. Jensen), I was surprised how many boxes it checked.
The idea was simple:
Find companies with explosive fundamentals. Then wait for the chart to confirm institutional demand.
The recent numbers reflect exactly the kind of explosive fundamentals Jensen looked for: 69% YoY revenue growth, EPS jumping from $0.13 to $1.01, Fundamentally, it looks like a market leader in the making. And perhaps the most interesting part: AI could become an additional tailwind, giving Reddit a realistic path to even faster growth going forward.
Technically, though, the picture is still pretty muddy.
My view:
If Reddit can continue executing and eventually reclaim key resistance levels (possibly above $190), it could attract a completely different class of investors.
Fundamental investors are already in.
Then growth investors show up.
Then CAN SLIM traders. (Their trading approach is very similar to Edward Jensen)
The momentum funds.
Eventually everyone is trying to squeeze through the same narrow doorway at the same time.That’s the bottleneck where things get interesting.
Full disclosure: I established a position back in May. Right now, I’m watching the daily candles closely. I want to see the chart actually confirm this fundamental strength before I consider pyramiding further into the trade.
Am I early, or am I completely wrong?
hey buddy,
could you please share the book Stock Market Blueprints by Edward S. Jensen.I have been searching for it since a few weeks now and its not available anywhere.Apparently it's long out of print.
This is exactly the right kind of thinking for a genius stock picker to go down.
Would you like me to write a framework for analyzing stocks from 1960s blueprints? It's actually quite surprising in a way most people don't expect.
the fundamentals to chart confirmation lag is real with RDDT..... feels like its still in that window where the story is ahead of the technicals catching up
watching the same resistance zone honestly..... if it breaks and holds above that the crowd rotation you're describing seems pretty plausible
bg: I'm pretty active on r/redditstock fwiw
one risks about RDDT's valuation imo is its long term Terminal PE (DAU \* ARPU + other revenues - costs): US DAU needs to reaccelerate for a clean rerate imo, if US DAU continues decelerating or even shrinks, the rerate will go the other way.
another is about the data deals - this one is complicated because most of the value in data now is about freshness, so it really becomes about whether RDDT can use this data to protect its upper funnel (LLM and search providers) while still getting paid on top of it
You're using AI to generate a summary, I can tell you that much.
"pyramiding further into the trade" lmao
Congrats on saying absolutely nothing other than it could go up
it's what AI does
You’re probably early, not “completely wrong.” The thesis can be valid, but price action will ultimately confirm or invalidate the timing 🧠⚠️
i'm sure the guy with a brand new account and hidden comment history that's shilling for rddt is totally posting in good faith and not just a bag holder trying to pump it.
I’m surprised active Reddit users like $RDDT so much
Top signal
Just wait until investors realize it’s all bots. Nothing organic anywhere. Every subreddit has been infested with bots.
Your assumptions are invalid. AI alienates people
No one wants to sit in an internet resource crawling with bots.
Retention only fails because of AI
No one wants to sit in an internet resource crawling with bots.
I wouldn't be so sure of that. I don't understand it myself, but people are constantly arguing with me about AI posts being valuable content on here.