Better Stock to Buy: Trump Media (Truth Social) vs. Reddit
Two new social media stocks gained a lot of attention in late March: Trump Media and Technology Group (NASDAQ: DJT), or TMTG, the owner of Truth Social; and Reddit (NYSE: RDDT), which calls itself the "front page of the internet."
TMTG merged with a special purpose acquisition company (SPAC) on March 26. Its stock opened at $70.90 but subsequently dropped to about $62, and recently traded around $53. Reddit went public at $34 through a traditional IPO on March 21. Its shares opened at $47 and soared to a record high of $74.90 five days later, but pulled back to about $48 as of this writing.
Should investors buy either of these volatile social media stocks right now? Let's review their business models, growth rates, and valuations to decide.
Source Fool.com
