Reddit is still undervalued

With the recent plunge from $262.50 to $180 in the last 12 sessions and less than a week from their next earnings report on February 5th I revisited the numbers from last quarter. I firmly believe that the company is undervalued at $180. I feel like the only risk to their business at the moment is daily active users but with the amount of political turmoil and people flocking to Reddit to discuss believe that will be an increase YOY as well. The recent LLM news about big companies now choosing to scrape YouTube shouldn’t really impact Reddit much as their C-Suite has continually said they’re not focused on LLM and only generate like 60m a year in revenue from it. Total revenue increased 68% year-over-year to $585 million, Ad revenue increased 74% year-over-year to $549 million, and Other revenue increased 7% year-over-year to $36 million Gross margin was 91.0%, an improvement of 90 basis points from the prior year Net income was $163 million, an improvement of $133 million from the prior year Adjusted EBITDA was $236 million, an improvement of $142 million from the prior year Operating cash flow was $185 million, an improvement of $114 million from the prior year Free Cash Flow was $183 million, an improvement of $113 million from the prior year Basic and diluted earnings per share (“EPS”) were $0.87 and $0.80, respectively Total fully diluted shares outstanding were 206.1 million as of September 30, 2025, down 0.2% from the prior quarter and down 0.1% from the prior year I personally don’t see any other companies with this kind of margin and growing this quickly at the moment. They also have 2.2B cash on hand. Is a 34B market cap too expensive for the next advertising powerhouse in the making? Wall Street seems to hate this stock over $225.