I'm excited about Reddit's potential because it's growing revenue at 40% y/y while maintaining a debt-free balance sheet. At 35x forward free cash flow, Reddit looks like a bargain considering its projected 85% free cash flow growth. Despite competition from AI-driven search tools, Reddit's user engagement and community trust remain strong drivers of its success.
Reddit (RDDT 5.50%) is one of the fastest-growing social media companies worldwide.
Reddit shares are down 40%, presenting a fantastic buying opportunity for long-term value investors due to its high-quality business characteristics. Reddit boasts explosive growth, immense brand equity, strong network effects, minimal marketing needs, and low CAPEX, making the business highly scalable and profitable. Free cash flow for 2027 is projected at $900 -1,200 million, suggesting a cheap forward multiple of 18-23x.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Reddit stock is down over 41% over the past month, and I think the stock is attractive at current levels. I'm optimistic about the company's international expansion and focus on making the product better. Management has been laser-focused on monetization, and paywalls for subreddits are soon to come.
Since reporting its fourth-quarter earnings in mid-February, Reddit Inc. (NYSE: RDDT) stock has dropped 36% in less than a month.
It often feels like it's President Donald Trump against the world right now -- although investors may feel it's more like Trump against the stock market.
After a massive surge on Tuesday, Reddit stock continued its upward momentum in the early hours of trading on Wednesday. The RDDT stock surged up over 11% to hit an intraday high of $136.47.
Reddit shares rose more than 10% on Tuesday, reversing a three-day slump that coincided with a broader decline among technology companies. The company's stock market upswing was likely bolstered by a Loop Capital analyst note published Tuesday that reiterated a buy rating and characterized the company's shares as "extremely attractive.
Investors in Reddit (RDDT 11.34%) stock are having a terrific Tuesday, as shares rise 10.7% through 11:10 a.m. ET.
Reddit stock price has crashed in the past few months. RDDT shares have crashed from the all-time high of $230 in February to a low of $107.30, its lowest level since October last year.
Reddit on Thursday launched new tools aimed at helping people adhere to community rules and better understand content performance, in a bid to revive user growth after a recent slowdown.