The Market Still Doesn’t Know How to Price Growth Stocks
Reddit combines 66% revenue growth with strong profitability (90% gross margin, 35%+ FCF margin), $2.8B net cash, and $1B TTM FCF, but still trades at only ~$30B market cap. The company offers an exceptional risk/reward relative to its quality and growth velocity, with significant operating leverage and scale opportunity as revenue growth should expand the earnings denominator.
At post $153.00·Now $149.38-2.4% since postedas of Sep 8, 4:30 PM ET
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Some Thoughts On $RDDT and valuation
Reddit has reached a profitability inflection point after 20 years of losses, driven by 130M+ daily active users, unique community-based advertising targeting, valuable proprietary data, and improved monetization. The company's authentic human-generated content and organized subreddit structure create a durable moat against increasingly algorithm-driven competitors, positioning it for long-term growth despite risks from Google search dependency and user monetization sensitivity.
At post $153.95·Now $149.38-3.0% since postedas of Sep 8, 4:30 PM ET
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“building a position into RDDT, planning to keep adding until around $160-$165/share”
RDDT is Undervalued
Reddit's fixed cost base and real-conversation moat support margin expansion; probability-weighted DCF valuation of $187/share implies 24% upside from current levels. The author is building a position up to $160-$165/share based on a multi-scenario model weighting base case, bull, and super-bull scenarios.
At post $152.70·Now $149.38-2.2% since postedas of Sep 8, 4:30 PM ET
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Everyone Is Misreading Reddit’s DAU Decline
Reddit is strategically transitioning from a search-dependent website to a direct, logged-in platform with high user stickiness and valuable proprietary user-generated data. Despite DAU decline concerns being misread, the company maintains 8 consecutive quarters of 60%+ revenue growth at 30% net margin, while controlling one of the largest collections of human conversations in an internet increasingly restricting free AI data access.
At post $150.31·Now $149.38-0.6% since postedas of Sep 8, 4:30 PM ET
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Reddit vs AppLovin vs Palantir
Reddit's unique advertising model leverages highly specific, self-organized communities to deliver precisely targeted impressions to intent-rich audiences, generating 8 consecutive quarters of 60%+ YoY revenue growth and >150% EPS growth. The structural advantage of community-driven targeting differentiates it from broad advertising platforms and supports continued upside.
At post $151.71·Now $149.38-1.5% since postedas of Sep 8, 4:30 PM ET
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I Still Don't Understand Why Reddit Is This Cheap Compared to Everything Else.
Reddit is severely undervalued at ~$32B market cap relative to peers with weaker fundamentals. With 61% YoY revenue growth, 31% net margins, strong moats from community-driven user stickiness that cannot be replicated by AI, and minimal direct competition, Reddit deserves a valuation comparable to Palantir ($420B) and should trade much higher.
At post $151.71·Now $149.38-1.5% since postedas of Sep 8, 4:30 PM ET
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$RDDTr/wallstreetbetsDiscussionbullish u/ANKERARJ · 21d agono track record yet $RDDT my short quick bull case - real world example.
Reddit's 20-year archive of real-world problem-solving content in human language gives it unique value for AI training. The Google licensing deal could become significantly more valuable over time as AI increasingly relies on Reddit's specific, human-annotated Q&A data.
At post $158.25·Now $149.38-5.6% since postedas of Sep 8, 4:30 PM ET
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“$RDDT $250 Calls expiring Friday”
[DD] Why $RDDT goes to $1,000 the exact second their AI team figures out Post-Nut Clarity
Reddit's AI will unlock massive monetization by detecting post-nut clarity moments and dynamically serving high-converting SFW ads (personal finance, bootcamps, trading) to users experiencing peak decision-making vulnerability. This conversion of unmonetized NSFW traffic into targeted advertising represents unlimited upside potential.
At post $164.50·Now $149.38-9.2% since postedas of Sep 8, 4:30 PM ET
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How I Get to PT $550 RDDT in 2027 — The Math Behind My Price Target
Reddit will maintain 50-60% revenue growth through 2028 while holding net margins at ~30%, driving EPS to $10.73 by 2028. Valued at 51-52x forward earnings, this supports a $550 price target for 2027; margin expansion to 40% could support $900 by late 2028.
At post $164.50·Now $149.38-9.2% since postedas of Sep 8, 4:30 PM ET
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Reddit Doesn’t Need to Become the Next Meta to Win — But I Think It Will
Reddit has demonstrated consistent 60%+ revenue growth with rapidly improving profitability while remaining early in its advertising monetization journey. Management has recruited key executives from Meta who are executing a proven playbook, and the company has significant upside from monetizing existing users, data-licensing opportunities, and potential product expansion into communications, payments, and AI—creating conditions similar to Meta's early post-IPO period.
At post $164.50·Now $149.38-9.2% since postedas of Sep 8, 4:30 PM ET
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Reddit Stock
Reddit stock has significant upside potential from its current 36 billion market cap due to its authentic community-driven platform, lack of direct competitors, and strong competitive moat. The author believes these fundamental strengths could drive a 10x return.
At post $164.50·Now $149.38-9.2% since postedas of Sep 8, 4:30 PM ET
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My GARP Framework: The Two Turbines of Long-Term Returns (1) EPS Growth and (2) Multiple Expansion
Reddit exhibits strong EPS growth potential with positive estimate revisions and analyst coverage, making it attractive if it avoids multiple compression. At reasonable valuations, moderate multiple expansion could drive 13-23% 5Y returns by 2031.
At post $164.50·Now $149.38-9.2% since postedas of Sep 8, 4:30 PM ET
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Short RDDT $150P exp Jan 15
Short RDDT $140P exp Sep 18
RDDT Gains so far - Inclusion into SP500
Author is bullish on Reddit's inclusion into the S&P 500 and personally uses the platform. Selling cash-secured puts to collect premiums while positioning for potential assignment, betting on upside through premium collection and long-term conviction.
At post $178.09·Now $149.38-16.1% since postedas of Sep 8, 4:30 PM ET
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Long 1,800 shares of RDDT
Long 100 shares of RDDT
Long RDDT $175C exp Oct 1 · 3 contracts
Reddit Added to the SP500
Reddit's inclusion in the S&P 500 is a major catalyst that has already driven the stock up 11% after-hours. The author holds a substantial position (1800 shares, 100 shares, 5 LEAPs, and 3 October 175 calls) and is bullish on continued upside as institutional demand from S&P 500 index funds floods in ahead of the August 18 effective date.
At post $158.46·Now $149.38-5.7% since postedas of Sep 8, 4:30 PM ET
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Reddit (RDDT): Done the DCF but want to understand ARPU runway
Reddit's ARPU is expected to roughly double by 2030 while international DAU nearly doubles and operating margins reach 45%, resulting in a fair value of $150–160/share. The core thesis is an ARPU bet contingent on genuine monetization runway beyond low-hanging fruit, with Reddit's recent execution suggesting operating assumptions are achievable.
At post $158.46·Now $149.38-5.7% since postedas of Sep 8, 4:30 PM ET
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“RDDT 250 Call Oct' 26. Loss 90% of 27k so far.”
RDDT retard
Author held RDDT Oct 2026 $250 calls and lost 90% of a $27k position as the stock declined sharply after management commentary on traffic issues in July. The thesis reflects regret over a bullish bet that deteriorated significantly.
At post $156.19·Now $149.38-4.4% since postedas of Sep 8, 4:30 PM ET
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A deep dive on Reddit for those who have the time
Reddit's advertising business faces conflicting signals: retail sentiment is bullish following a 20% post-earnings drop, betting that DAU stagnation is overblown, while institutional sentiment remains bearish with elevated short interest and the stock struggling to recover to pre-SaaS selloff levels.
At post $158.72·Now $149.38-5.9% since postedas of Sep 8, 4:30 PM ET
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Reddit (RDDT) Yolo
Reddit is undervalued at under $40B market cap as the 9th most visited website globally. The company possesses both a strong authentic user platform and valuable AI training data to monetize, positioning it to crush earnings growth under current management.
At post $185.26·Now $149.38-19.4% since postedas of Sep 8, 4:30 PM ET
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Long RDDT $160C exp Dec 18 · 10 contracts
RDDT to $300
Author is bullish on RDDT, betting on significant upside to $300. Position taken in call options (160c 12/18) suggests confidence in a substantial move higher from current levels.
At post $199.44·Now $149.38-25.1% since postedas of Sep 8, 4:30 PM ET
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“Holding til 300/share”
RDDT YOLO
Author is holding Reddit shares with a bullish conviction, targeting $300 per share as an exit price.
At post $197.76·Now $149.38-24.5% since postedas of Sep 8, 4:30 PM ET
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