Bullish on Reddit (RDDT) as an undervalued ad platform whose MAU and EPS growth are outpacing a falling share price, with the 2026 World Cup and US midterms as catalysts.
RDDT — LONG The author argues Reddit's core growth goals are materializing fast: MAU reportedly surpassed 1.4 billion in January 2026, up ~29% year over year, driven by political volatility and non-English-market penetration, which should feed its ad-based revenue model. Catalysts cited are the 2026 North American World Cup (2022 Qatar edition drew over 530 million Reddit views) and the projected record-spending 2026 US midterm elections. The valuation case: EPS rose 244% to $1.24 in Q4 2025 while the stock fell from $214 to $140, collapsing the run-rate PER from 148 to 28, which the author says prices Reddit like a marginal-growth small/mid-cap. Stated caveat is that the MAU surge may be seen as short-term and that past tournament spikes were temporary.
While Reddit's (RDDT) EPS soared by 244%, rising from $0.36 in Q4 2024 to $1.24 in Q4 2025, the stock price paradoxically dropped from $214 to $140. This shift caused its Run-rate PER to plummet by 5.2 times, falling from 148 to 28.
This Reddit post, published February 12, 2026, features u/MasterpieceOk8986 discussing RDDT. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/MasterpieceOk8986 · Tickers: RDDT