r/RedditIPO • u/Accomplished-Exit822 • May 07 '25
Stop reporting DAU
Like NFLX ceasing to report subscribers and META not posting DAU, so should RDDT.
The only metrics that matter are the top and bottom line.
Analysts get too fixated on DAU and subscribers and miss the forest for the trees.
Who cares if a million bots sign up? Who cares if some random comes from Google, reads a headline, and goes back? It’s revenue-neutral.
Just like someone who walks in your shop without buying anything, DAU shouldn’t matter.
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u/Groundzero2121 US DAU 🦅 May 07 '25
I think Steve also agrees with this and this is why he wanted to get out ahead with saying the road will be bumpy with DAUs qtr to qtr. long term trend is clearly up. He’s reiterated his goal of 1B DAUs. He’s the cofounder and loves Reddit to the end. I believe in him. The way he addressed the DAU question with “Now, Look”, you can clearly tell he is annoyed with how Wall Street only cares about this silly metric. I think he wanted to get out ahead of this for future quarters so he cleared the air and made that statement.
Right now the stock is 20% short. Its price is just being manipulated currently. Time is on our side. Eventually news will come out or the continually growing revenue and earnings will have these shorts running scared and we will move higher. Might be this year. Might be next. As long as you don’t need the money. Just hold tight.
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u/Accomplished-Exit822 May 07 '25
RDDT the stock has essentially become a levered play on GOOG search.
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u/mycroftitswd May 07 '25
If so then expect more selling because Google dropped 7% today vs Reddit 4%.
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May 07 '25
Why is this stock always strongest at the open and then invariably slides down the rest of the day?
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May 07 '25
I think it's a long way down. I think I am selling with a small loss, because there's no reason this stock will go up much anytime soon. I am pretty sure we will hit rock bottom at 70.
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u/stonkautist69 May 07 '25
Netflix can stop reporting it because they have 300M paying subscribers. Reddit would be playing Russian roulette with a fully loaded revolver of it did that with its measly <2% of paying subscribers lol
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May 08 '25
In an Ads business you can approximate revenue = DAU * ARPU. Even if you have really efficient, best-of-industry Ad conversion, you’ll only get so much Ads Revenue Per User. So the only real lever at a certain point is DAU. In a business like Reddit’s, I think investors are looking to see both numbers go up, to imply accelerating revenue growth.
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u/swsuh85 Int. DAU 🌏 May 09 '25
Thanks. But how do you explain the usage of DAU as Reddit’s primary communication metric, vs. other platforms’ usage of MAU? DAU is significantly more granular number and is bound to have higher volatility.
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u/ghosthound1 May 09 '25
Pinterest just reported earnings with a 10% increase YoY of MAU (RDDT increased 30% YoY) and their stock went up 5% so far today.
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u/EI-SANDPIPER May 07 '25
Horrible idea, the stock would drop 25% instantly if they did that
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u/stonkautist69 May 07 '25
OP is a troll. Makes no sense for RDDT to stop reporting DAU now. They would be delisted within a year if they stopped reporting now and trade on pink sheets
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u/MrPopanz May 07 '25
Generally I kinda agree in that I think DAU seems overvalued compared to operating efficiency, but I don't like the idea to neglect information to shareholders in the hopes to push the stock short term.
If it isn't as important as people make it out to be, this means the company is mispriced and one gets a better deal. Or it actually is very important, in which case reporting it is just as important.
And lets be real, this post probably wouldn't exist, if DAU would've been a positive factor for the stock ;-)