Added to YB: 2026-02-24
Pitch date: 2026-02-21
RDDT [bullish]
Reddit, Inc.
-4.02%
current return
Author Info
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Company Info
Reddit, Inc. operates a digital community in the United States and internationally. The company’s platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging.
Market Cap
$28.7B
Pitch Price
$148.42
Price Target
630.00 (+342%)
Dividend
N/A
EV/EBITDA
55.90
P/E
57.30
EV/Sales
11.91
Sector
Interactive Media and Services
Category
growth
Inside Reddit's ARPU Engine (RDDT)
RDDT: Forum-based social w/ 100k+ subreddits. 40% of AI queries cite Reddit - renegotiating Google/OpenAI data contracts early for significant price increases from current $130M (pure margin). US ARPU growing 60% YoY on DPA rollout (2x ROAS vs prior campaigns), targeting $100 (half of Meta's $212). 2028 EBIT target $2.7B vs $356M today (7.6x) at 46% margin. Trading 8x EV/2028E EBIT. 35-55% 3yr IRR at 20-30x exit multiple. Risks: ad environment, user revolt, cost mgmt
Read full article (19 min)