Free Cash Flow: NVIDIA vs reddit

In the first half of 2026, NVIDIA generated about 75 billion in cash. It deployed this capital to invest in everything needed to further grow the business and also to return money to shareholders: 43% (35bn) went to investments, 26% (21bn) to reducing the share count, 16% (13bn) to offset SBC (Stock-Based Compensation), 9% (6bn) to dividends, and 6% (4.5bn) to CapEx. [https://www.wsj.com/finance/investing/nvi…) Reddit, meanwhile, did none of the productive things. It used all of its cash (100%) to offset SBC. There is no CapEx, no investment, and no return to shareholders. It is a zero either way: empty revenue to funnel shares/cash mostly to mediocre executives. To do that, they use an annual dilution of up to 5% (called "evergreen" dilution) on top of big, one-time hits like IPO dilution. Once the current 2023 executive SBC dilution scheme expires, they will announce the next big one-time hit, which will likely exceed the previous scheme in size. Total dilution will continue to closely track revenue growth, with the effective dilution hidden behind nonsensical accounting rules and obfuscating language. Reddit could have been highly profitable 10 years ago. Instead they chose to run a dilution scam., now paying random employees like Jen Wong up to $250m (which is \~10% last year's revenue) in shares a year.