Author argues Reddit is undervalued after posting $250M GAAP Q4 income and guiding 50% Q1 growth, implying ~28x annualized earnings.
RDDT — LONG The author claims Reddit is 'braindead cheap' after posting $250M GAAP income in Q4 with expanding margins, putting it at roughly 28x annualized earnings at current market cap. They argue the company consistently underguides, so the 50% Q1 growth guidance likely understates actual growth into 2026. The stated catalyst is continued margin expansion and beat-and-raise quarters. Main risk implied is reliance on management's conservative guidance translating into real growth.
The company just posted GAAP income of $250M in Q4. And they're still expanding their margins, which is crazy.
This Reddit post, published February 05, 2026, features u/ActuallyMy discussing RDDT. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/ActuallyMy · Tickers: RDDT