The Prof G Pod with Scott Galloway

Is Reddit Still a Buy? Democratic Strategy and Rethinking Financial Advisors

February 9, 2026

Key Takeaways Copied to clipboard!

  • Scott Galloway currently holds Reddit stock but is neither buying nor selling due to its elevated valuation (100-120x PE), despite believing it is an incredible consumer offering with significant monetization potential. 
  • Galloway is deeply disappointed with current Democratic leadership, specifically Chuck Schumer, and believes the party needs a new generation of leaders, highlighting figures like Senators Murphy, Booker, Bennett, and Governors Shapiro and Newsom as part of a strong bench. 
  • A 1% annual financial advisor fee can erode approximately one-third of long-term investment returns, making low-cost, diversified index funds the superior choice for most investors, especially those in their 30s. 

Segments

Reddit Investment Analysis
Copied to clipboard!
(00:01:25)
  • Key Takeaway: Reddit is considered a phenomenon and a strong consumer offering, but its current stock price reflects high growth expectations, leading to a hold recommendation.
  • Summary: Scott Galloway still owns Reddit shares, viewing it as an incredible consumer offering, though he notes mixed feelings regarding its social impact on young men. The stock trades at an elevated Price-to-Earnings ratio of 100 to 120 times earnings, signaling significant future growth is already priced in. The bull case rests on under-monetization relative to user base and data licensing agreements, while the bear case is purely valuation.
Democratic Party Strategy Critique
Copied to clipboard!
(00:05:28)
  • Key Takeaway: The Democratic Party needs a new generation of leadership beyond figures like Chuck Schumer, who is deemed too old and ineffective, to effectively counter current political challenges.
  • Summary: Galloway expressed extreme disappointment with Senate Minority Leader Schumer’s leadership, exemplified by sending only a ‘strongly worded letter.’ He finds younger Democrats like AOC and figures such as Senators Murphy, Booker, and Governors Shapiro and Newsom to be strong, clear-thinking stars on the party’s bench. The current Democratic strategy appears to be highlighting affordability and perceived overreach while waiting for the opposition to make mistakes, which Galloway feels is insufficient for immediate impact.
Financial Advisor Fee Impact
Copied to clipboard!
(00:14:13)
  • Key Takeaway: Paying a 1% annual advisory fee can reduce long-term portfolio value by roughly one-third over 30 years compared to self-managing with low-cost index funds.
  • Summary: A 1% fee compounding over the long term significantly erodes inflation-adjusted returns; for example, a portfolio growing at 9% could lose $1.6 million over 30 years compared to a fee-free scenario. Financial advisors are best utilized for complex tax optimization rather than basic investment allocation, which can be managed using AI tools and low-cost funds from providers like Vanguard or Fidelity. Advisors who offer gifts or entertainment are signaling that their fees are masking hidden costs.