To The Moon

Reddit’s 1.2B Untapped Searches: The Next Goldmine?

Bank of America just dropped some interesting takes on $Reddit(RDDT)$  after chatting with management and Bay Area investors, and it’s got me hyped—but also scratching my head. They’re calling out a ‘big opportunity’ ahead, especially with the new AI-powered Answers search tool. Apparently, it’s still in testing, but could be a game-changer for pulling in more daily users (currently at 50M DAUs out of 380M weekly users). Imagine if they crack that and get more of us lurking normies to stick around longer—engagement’s already jumping from 20 to 50 minutes once you’re hooked.

Ad-wise, they’re cooking too—new formats, better relevance with bigger models, and automation to hook smaller advertisers. With half the ad load of other platforms and 1.2B unmonetized searches a month, BofA thinks revenue could go parabolic for years. Plus, the Google partnership and video platform are getting some buzz. Sounds like Reddit’s still early in its glow-up phase.

But here’s the kicker—they’re keeping a Neutral rating. Stock’s at 13x 2026 sales, which is spicy, and they’re worried macro headwinds could squash that premium. Fair point, but feels like a hedge. Anyone else think this is undervaluing the long-term potential? Or is the valuation too frothy for now? Curious what you degens think—bullish or bearish on RDDT?"

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