Reddit's US ARPU growth is more impressive than the market credits. It rose 40% since March to $14 per quarter, while trailing free cash flow reached about $1.2B in September. The US daily-user chart is less flattering. x.com  x.com 

Reddit is cheaper now than in 2025 even though its revenue has nearly doubled since then. x.com 

Reddit's worsening US user growth threatens its revenue runway despite elite ARPU growth, revenue growth and margin expansion. US daily users fell 2% year over year and missed estimates by 7%; the Q4 guide was weak. It needs healthier user growth in its most important market to dispel Google/AI discovery fears. Forward indicators do not look promising, and the trend of positive estimate revisions will end. x.com  x.com 

Reddit's revenue per share has grown far faster than its stock price: +493.4% versus +178.9%. x.com 

Reddit pairs ridiculously good growth with clean financials. It grows without making the rest of the business worse through excessive stock-based compensation or falling margins, and clean financials matter a lot. x.com 

Reddit's Q3 drop in US daily users risks another poor market reaction, even if headline earnings are strong. Last quarter a slight sequential decline in US daily users sent the shares down 20% despite a massive triple beat; the new chart shows a further sequential drop in Q3. x.com  x.com 

Reddit still looks undervalued as Needham's Q3 traffic tracker shows app downloads up 19% and web visitors up 2-3% quarter over quarter, adding to strong alternative data behind an expected Q3 beat and raise. Shares trade at 18x next-twelve-month EPS while revenue is growing 60-65% and EPS 65-70% year over year; new Anthropic, OpenAI or Gemini licensing deals remain possible over the next couple of months, not secured. x.com 

Reddit's 61% revenue growth and 177% EPS growth at a 30 P/E make it easy to imagine it working out well, even if its management is detestable. x.com 

Reddit carries Pinterest-like downside to a 10x P/E if investors decide North American user growth is toast, while the stock is priced on everyone playing for big numbers from new lab deals. x.com 

Reddit's selloff has nothing to do with the business, which scores 109 on the Rule of 40. Last quarter revenue grew 69% with a 40% adjusted EBITDA margin, net income was $204M, free cash flow $311M at a 47% margin, and cash stands at $2.8 billion; the Q4 print scored 115. In a real drawdown the market sells what is liquid and up, and quality does not protect against multiple compression. When the tape settles, the scores will still be there and the fear will not. x.com