Coatue Management Builds Billion-Dollar Position in Reddit
Hedge fund Coatue Management has revealed a $1 billion stake in Reddit, as of December 31. This stake represents approximately 3.6% of Coatue's publicly traded portfolio and has already proven profitable in 2023.
Reddit's stock has surged since October, nearly tripling in value on the back of solid earnings. In the third quarter of 2022, the company reported a surprise profit, 68% year-over-year revenue growth, and a significant increase in active users.
Despite a recent decline of around 20% from its February high, Reddit's stock remains elevated, with analysts at JPMorgan predicting continued progress and revenue growth.
In addition to its Reddit position, Coatue has made other notable moves in recent months, including reducing its exposure to Chinese stocks and investing in technology companies such as Charles Schwab, Affirm, Okta, and Datadog.