Reddit's primary revenue (90%+) is from ads, growing 75% YoY in Q4 2025, with a forecasted 40%+ growth rate. Analysts project high profitability (40%+ EBITDA margins) and have price targets up to $320. The market is undervaluing RDDT's scalable ad business and the impact of its $1B share repurchase plan. Applying a 40% growth rate to net income and the buyback suggests significant upside. Strong ad growth, analyst confidence, and capital return via buybacks support a long position with the potential for the stock to double. Ad growth slows below 40%; AI data licensing revenue (a minor but highlighted segment) declines as predicted; high PE multiple (62) contracts if growth disappoints.
RDDT
HIGH
Apr 23, 02:00
Key Points
['75% YoY ad revenue growth', '$1B share buyback plan', '40%+ EBITDA margin target', 'PTs up to $320', 'High PE multiple (62)']
April 23, 2026 at 02:00