r/stocks Jun 15, 08:35 PM
I used a forgotten 1967 stock market blueprint to analyze Reddit (RDDT) Most investors see Reddit as either a social media stock, an AI data play, or just another expensive growth story.
But when I ran RDDT through a framework from a largely forgotten 1967 book (Stock Market Blueprints by Edward S. Jensen), I was surprised how many boxes it checked.
The idea was simple:
Find companies with explosive fundamentals. Then wait for the chart to confirm institutional demand.
The recent numbers reflect exactly the kind of explosive fundamentals Jensen looked for: 69% YoY revenue growth, EPS jumping from $0.13 to $1.01, Fundamentally, it looks like a market leader in the making. And perhaps the most interesting part: AI could become an additional tailwind, giving Reddit a realistic path to even faster growth going forward.
Technically, though, the picture is still pretty muddy.
My view:
If Reddit can continue executing and eventually reclaim key resistance levels (possibly above $190), it could attract a completely different class of investors.
Fundamental investors are already in.
Then growth investors show up.
Then CAN SLIM traders. (Their trading approach is very similar to Edward Jensen)
The momentum funds.
Eventually everyone is trying to squeeze through the same narrow doorway at the same time.That’s the bottleneck where things get interesting.
Full disclosure: I established a position back in May. Right now, I’m watching the daily candles closely. I want to see the chart actually confirm this fundamental strength before I consider pyramiding further into the trade.
Am I early, or am I completely wrong?
submitted by /u/Select-Leading-4542
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