Reddit: An Overlooked Powerhouse As User Growth Continues To Soar
Reddit remains a compelling rebound play, with a reiterated buy rating despite a 30% YTD decline amid AI disruption fears. RDDT's Rule of 40 score reached 104% in Q2, reflecting exceptional growth and profitability, underpinned by 90%+ gross margins and disciplined opex. Valuation remains attractive at 8.0x FY26 EV/revenue and 18.6x EV/EBITDA, with revenue projected to grow 53% in FY26 and margins expanding.