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Array Digital Infrastructure, Inc.
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Samsung Elec, SK Group seal $950 billion deals as South Korea hosts AI powers
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"Iran is 2 weeks away from a nuke" - Council of Nicaea, 325 AD
When I invested in Reddit, around 151$ per share never though the community would allow this company to fall into value territory. A company growing more than 60% their revenues during 8 quarters in a row with a net income exploding +170% YOY falling **more than 20% in a single day.** Taking as a reference my own estimates the company is trading at less 15 times earnings 2027, only taking into account the AD business and mantaining the other revenues segment like this year. What is the idea behind this? simple EEUU DAUs are falling Q-Q a little bit. It has happened before, but I want you to watch closely the tendency over time of this metric, because yes, it is important as the ARPU in EEUU is way more higher than international, even if the DAUs of Reddit in general has grown 18% YoY. Even considering the fight with Google a problem because Google control part of the Reddit distribution it has not being such a pain in the ass. In fact Reddit has grown from 27 millions user to 53 millions user in less than 5 years. Impresive. What is the bull thesis? Maybe with Alphabet Reddit can't argue so hard, maybe they need to capitulate a bit because Google control the old fashion distribution channel and they can change (with a little pay) their gold standard content for the AI engine for the door of many users. Maybe less valuable and less resilient but necesary users. But this does not end the AI bull idea: **Anthropic and OpenAI does not have any power over Reddit.** They need to feed their LLMs with Reddit content to win the race of AI, and Reddit does not need anything from them, **only money.** The thing is that money would come at 0 COGS, so it is a near 100% gross margin and even near 100% operating margin business coming from nowhere and additive to the ADs already known business. **How much are the able to pay or how much are a jury going to make them pay? we still don't know but this is the real bull case of reddit.** Is the community blind or are we going to make Reddit stock great again?
If you can't share an account how do they get that additional AD revenue?
They increased price per impression (CPM) by 13% (jacked up prices) and increased the number of impressions by 12% (show more ads), collectively that already makes up a huge chunk of the extra revenue you see here. This however is not sustainable since it's not actual substance, as it hasn't resulted in net new ROAs for advertisers nor has it increased profit for them. What you want to see is that 30% of increased AD SPEND from advertisers or significantly from an increased number of advertisers, which would finally suggest the AI investment is actually making advertising more efficient and effective that they want to spend more. Advertising business is very lucrative, but you can't see the 'product' or evaluate its quality as easily, which is where the disconnect is. They've spent crap tons of money on investing in a new system that is supposed to make their product better, but instead of that, they've made the advertiser's experience worse, while simultaneously jacking up prices. There is no net new gain in value in what they're doing. The increased revenue is a facade mostly from jacking up prices of ads and forcing people to see more ads. The final consumer is the browser user, if your targeting has gone haywire with AI logic, your making less money from every user due to bad targeting and AI slop, so advertisers are losing, while browsers are getting a worse experience due to poor targeting and irrelevant ads. It's been a lose lose scenario..
WE CAN SAVE RDDT. EVERYOEN GO TO r/GONEWILD AND JERK OFF NOW. CLICK ON EVERY AD. DONT FORGET TO TIP UR MODS. BUY BUY BUY
Ok hear me out. You losers wearing clone watches are so cringy. You try to point out how frivolous and materialistic it is to wear jewelry yet you go out of your way to wear a fake version of that jewelry? If you actually liked the design. The design is utilitarian and there are likely dozens of homage watches. There are probably even custom watches that don't try to be 1:1 copies with the logo. The fact you aren't getting those shoes you're a clown. If you want to use your watch to communicate taste or interest. The first thing you need is the watch to mean something other than the sun of its part. Did you get a 100k windfall from your investments? You first 50k+ bonus at work? Sold your first business? You went to the AD, chatted them up about your milestone and your interest in a specific model and you splurged on something cool. That's the value of cool jewelery. Your story of being a crusty incel arguing with other internet losers about which super clone looks the best and how "nobody can tell." Loser behavior... Nobody is gonna authenticate your watch. They're gonna authenticate you. And they will tell within a second that you're someone with zero potential in life.
Next it will be AD with an in-line AD
Wow all those bots really must drive in that AD revenue 😂😂
Genuinely, why invest in a social media platform? What do zero-dollar paying customers give you besides targeted AD insights?
There hasnt been peace in the middle from 930 AD to the 1600s. who you kiddin pal
bullsht on you just got a new rolex…unless you got it grey mkt and paid way over the AD price
MIcrosoft has laid off 20,000 people since last July, 9% of workforce this is really god awful. they have no clue how to do Xbox, their Azure Cloud is expensive and lacking some important infa like Ultra‑low‑latency global networking, Serverless maturity & cold‑start performance, and ML hardware architecture, but strong suit is in Entra / Azure AD. They are stacked with Office, Teams, Windows, Dynamics, Github, and LinkedIn, Copilot I think is a gem that will soon have MIcrosoft models but still keeping OpenAI as a main engine. The management seems to have tunnel vision with a lot of this hyper‑focus on Copilot integration while peripheral systems degrade and continue to stagnate without strategic vision, proper budgets for R&D that leads to less productivity and possible layoffs... all just trying to get ahead on AI. MSFT is pushing $2.84T market cap, I hate to say but i think trades flat and there will be more selling pressure if they do more layoffs to restructure around AI, if Xbox implements more commercials into Xbox like planned free tier and more on the dashboard. Many of us here want MSFT to do well. I'm just not as bullish anymore and can not confidently say this is a bullish position at this time. Are you buying MSFT calls and stock this week, why?