The author argues that Reddit is significantly undervalued given its rapid user growth, strong EPS performance, and upcoming catalysts like the 2026 World Cup and U.S. Midterm Elections.
RDDT — LONG Reddit is currently undervalued, with its P/E ratio dropping significantly despite a 244% year-over-year EPS increase. The platform is positioned to benefit from increased engagement during the 2026 North American World Cup and record-breaking spending during the U.S. Midterm Elections. The main risk is that the current market valuation reflects skepticism regarding the sustainability of this growth.
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 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