Added to YB: 2026-10-02
Pitch date: 2026-09-25
RDDT [bullish]
Reddit, Inc.
+6.95%
current return
Author Info
HatedMoats identifies hated moats. I buy companies when the market panics. Contrarian investor focused on quality, value & long-term growth. Sign up for the newsletter.
Company Info
Reddit, Inc. operates a digital community in the United States and internationally. The company’s platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging.
Market Cap
$27.4B
Pitch Price
$149.00
Price Target
225.00 (+41%)
Dividend
N/A
EV/EBITDA
30.30
P/E
33.20
EV/Sales
8.87
Sector
Interactive Media and Services
Category
value
Reddit: DCF Valuation
RDDT (monitor): Reddit appears undervalued at the analyzed $149.84 versus a $225 base-case DCF, implying 50% upside and a 33% margin of safety. Q2 international DAUq was 77.1M versus 53.2M in the U.S., but ARPU was only $2.26 versus $11.85. The case requires $17B of revenue and a 38% GAAP EBIT margin by 2035; slowing U.S. growth, volatile search referrals and roughly 95% advertising exposure are material risks. The valuation verdict is favorable, but the overall buy decision is deferred pending deeper company analysis.
Read full article (7 min)