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I have been bullish on Reddit (NYSE:RDDT) since the day of the IPO, when shares were trading <$50. And after the stock dipped from >$200 to <$100 as a consequence of the tariff shock, I again
Reddit: The Bull Case Is Stronger Than Ever
Summary
- Reddit's Q2 results smashed expectations, with revenue up 78% YoY and robust guidance for Q3, reinforcing my bullish thesis.
- I project Reddit can reach $5 billion EBIT by 2035, driven by user growth, deepening monetization, and disciplined cost management.
- Valuation modeling suggests Reddit's shares could compound at 11% annually, reaching $525-550 by 2035, offering strong long-term upside.
- With a standout quarter and clear growth levers, I remain a strong buyer and recommend accumulating RDDT shares for the long run.
Experience as an investment analyst for a major BB-Bank, as well as private equity consultant for MBB. Currently working towards the CFA charter, having completed I&II. Passion for risk-assets (Growth, Contrarian, Emerging Market). Ex-colleague and close friend of Investor Express.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of RDDT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Not financial advice.
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