I consider this stock as high risk so I would sell it and invest in something more stable and less risky, but thats just me. Luck is just that Luck and you will only get lucky so often then you luck runs out. One piece of bad news and a stock like this will drop like a stone. Good luck

 

P/E is 172x. You bet that I would sell. Hopefully it is in a registered account, otherwise I would gulp but still get <50% after tax.

After a good and quick 40% gain, I regretted selling META as it continued to climb; its P/E is still at a not-insane 28.

The 'big one' that I will realize capital gains over the next year in my retirement (in 3 months) is MFC which went 3x (+67%). I feel better about this one as its PE is 14. Looking back at all 25 years info is bad news, as its current value just matches the 2007 peak market value, just before the crash that took 18 years to recover (aside from yields). I just cross my fingers that the next crash won't happen before next January!

 

I let my winners run and purge my mediocre performers subject to them continuing to meet the original criteria. I hold different categories with lower standards, similar to what indices try to achieve. Growth in net worth since January 1, 2020 has grown by 98% after allowing for all our Blow That Dough expenditures!

I have never held Google, Meta, Microsoft, Amazon or Nvidia. I believe they are in bubble territory.

 

I have never held Google, Meta, Microsoft, Amazon or Nvidia. I believe they are in bubble territory.

I hold Google, Microsoft, Amazon and Apple.

I think the 3 of them have significant competitive advantages and barring government interference, or the more likely complacency, will continue to remain very profitable.

Other than Apple, I think the others have some room to grow, and competition is unlikely.

Apple.. I just don't see the point, everyone has a cell phone, there is limited reason to upgrade. If they were forced to compete fairly, and lose their exploitive app store monopoly, I think they'd be in trouble, the App store (and other services) are a significant portion of their profit.

Nvidia, is in a different class, they're totally dominating a super hyped market. I don't see how they can justify their price, but I'm not betting against it.
Meta, I'm not sure, I don't really understand their product mix and path forward.


Regarding reddit, I find it very valuable, it's one of the best discussion forums for a wide variety of topics.
I'd either hold, or sell off half

 

I hold some individual stocks, but I think they should be limited to a small % of the portfolio, and I also avoid concentration. I think my individual stock picks are less than 10% of my portfolio, and the rest are in diversified index funds.

You can't get into much trouble limiting your stock picks to < 10%

 

I had a good run with a USD ETF called IYW- a tech focussed fund.

I still hold a small stake but reduced my exposure with the fear that the AI hype that ran up the share price of many players in the fund will end up as just that, hype.

That said, over a 4 year period about 65K in and though periodic trimming as its value ballooned I harvested more than 230K, and still hold a 30K stake.

In about that same time period I have also seen 400K of a big USD bond etf -AGG- I hold lose 100K of its value, and to date is only back up to 320K. But it has reliably spit our $1100-1400 a month.

 

I've already taken a bit of profit and I keep feeling I should take a bit more ..

Then take some more. You are essentially able to "play" with the house's money. Which would bother you more. It drops significantly and your gains evaporate or you sell some and it keeps climbing. I have some stocks that multi-baggers and plan to hold the entire position. I have others where I've recouped my initial investment (and then some) and still have a decent sized position. I can't comment on Reddit specifically

 

By definition, Reddit is social media subject to the whims of its users and in competition with a host of other offerings. It was, and is, a roll of the dice....play money so to speak to offset what might be boredom of what the OP considers him/herself as a 'buy and hold' investor. Only the OP can decide whether continuing the game in some form continues to provide occasional excitement.

 

Why not just look at their PEs and reduce those at the top end? That would seem to be the prudent course?

 

You want to have some growth type stocks to participate in the market growth. Just put a limit on the growthier stuff of 10-25% and have the rest in blended type stocks in a barbell approach. RSI is 67 so a little overbought now if you want to sell a little and then maybe buyback when the RSI is lower.

Company is growing at 60%/ yr in line w the PE for the NTM so the multiples arent too bad. They are social media, the AI related stuff could be a little more overvalued.

 

Alot of really interesting takes. I'll probably take a bit more profit and just ride it out The question is how much. If I take half, then I'll literally have nothing to lose....

 

I've done this in the past, takes the sting out of being wrong.

I just don't know how profitable reddit will be, and I think a major acquisition would be a windfall, I'm not sure that it's all that appealing a target.

 

Yeah specific to Reddit - this is the issue. A lot of what ifs. They need to be able to monetize their user base. I love the product. I love that it's debt free. But they aren't making alot of money and how they get there I'm not entirely sure.

Hence, why I got lucky.

 

You just have to buy on a dip to lower risk too like the Reddit chart below when there was all the tariff turmoil starting in April and the RSI's are low. Generally, the market sets prices pretty fairly based on their earnings, growth and other factors. At $264 it is likely a little overvalued w the RSI's at 67 but it will adjust in time to new earnings and other news.

 

But I'm having trouble grasping the evaluation.

AI bubble, I think. Reddit is one of the largest collections of human input on a wide variety of topics. Makes an incredible training dataset. Anyone with deep pockets can put together a new LLM but getting good input to train it is not so easy.

 

Do you have a target allocation? If you do such as 3% stick to that 3% and trim the holding, if not, perhaps consider pulling your original investment and letting the remaining profit ride things out this is what I have done in similar circumstances, and it has worked out well thus far.
Another thing to consider, is what are you going to buy with the proceeds if you do sell? There’s no guarantee that whatever you buy will be a winner.

 

If I were you I would count my stars and sell most of Reddit. It stinks like a meme stock... PE ratio of 225 and very superficial revenu model based on advertisement. Their platform is also heavily moderated/censored with a leftist political bias and there's a large segment of the internet who are fed up with it and looking for alternatives. I think Reddit will still be around for a long time, but I don't see them growing in a way that this PE makes sense.

 

Many subreddits actually have useful and valuable discussion.
Just politics is so important and there is a huge bias everywere.

Here most of the members are center/right, but we have some far left posters (and mods).
The bias is something to be aware of, not necessarily a invalidating factor.

 

For the record I did manage to unload a few shares yesterday. Of my original 115 shares I'm down to 80. Not half, so not quite free money, but over all a small part of my portfolio.

I have to say, it's been fun ride up and down. Much more exciting than the majority of my holdings.. but to be fair I couldn't sleep at night if I had too much tied up in a stock like this.. whether I'm up or down the stress would be too much. Lol. What I have is fine.

As for the site - yeah the politics are fairly left, that doesn't bother me. There is more to life then politics, and as others have said, there is lots of other great information on that site.

 

but to be fair I couldn't sleep at night if I had too much tied up in a stock like this.. whether I'm up or down the stress would be too much. Lol. What I have is fine.

Best reason to sell...

 

Reddit is certainly high growth. The question is, as always, is what is next. I think the big caps - Microsoft, Apple, Facebook, Google, Amazon, etc, all have pretty solid businesses and you can see how they are both growing existing lines and expanding others, and have been more successful than not. Their margins are not so incredible - roughly 20% - that they won't be absolutely hammered in a recession - their profits could go to zero pretty easily. But I do think they have a pretty solid business. Maybe investible at half the current stock price, which would be still over 10 times revenue.