Serenity@aleabitoredditPost2026-07-06

The author reflects on Reddit (RDDT) returning above $200, highlighting its strong fundame

The author reflects on Reddit (RDDT) returning above $200, highlighting its strong fundamentals (revenue, margins, net income, growth) and attributing its previous drop to opportunity cost vs hyperscaler capex. They also discuss bullish outlooks for Micron (MU) and Lumentum (LITE) as supply bottlenecks lasting into 2029, dismissing noise around memory optimization and Chinese players. Additionally, they note recovery in Robinhood (HOOD) and Hims & Hers (HIMS) without detailed analysis.

“Was a sad few months for $RDDT. But glad it's finally back above $200. Reddit was doing: - $663M revenue w/ 91.5% gross margins - $204M GAAP net income - 45%+ fwd Y/Y growth after 69%+ growth. - Net profit is ~30.7% of revenue Felt very weird to see a profitable company get dragged down after earnings. But in hindsight, given the increase hyperscaler capex, the drop felt more like it's more relative opportunity cost more than fundamentals? Since a lot of inflow poured into $MU / Sk Hynix that are bottlenecked into 2029. Or with laser bottlenecks like $LITE that last into 2029 as well. Same thing happens in reverse after selloffs ig, even if fundamentals didn't change. Been seeing a lot of noise with memory optimization or Chinese players... but don't quite think you sign 16T+ LTAs if memory was getting flooded or not used anytime soon. Same with optical players... if in earnings, they state anything they make gets bought, I don't quite think a lot of the noise has material effect on their fundamentals. Regardless, nice to see some recovery with familiar faces like $HOOD, $HIMS, and $RDDT though.”