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 

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'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 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'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 pullback below $150 on insider-selling headlines is not a fundamental shift, as monetization is accelerating faster than user growth. Q1 2026 revenue grew 69% to $663 million with $204 million of net income, a 31% margin, and EPS of $1.01 was 7x a year earlier. Daily active users rose 17% to 126.8 million while ARPU jumped 44% to $5.23. AI data licensing deals with Google and OpenAI are a higher-margin second engine, projected to reach $400 million a year by 2027. x.com 

Reddit is one of the most compelling opportunities in the market, and today's worries about Google referrals and AI disruption will look like the moment to have bought. Investors fixated on search-referral risk and short-term user growth are missing exceptional financial performance: surging revenue, expanding margins and no debt. It trades at just 19x an estimated $1.7 billion of 2027 free cash flow, supporting a $315 target by early 2027. 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 after its Q2 report makes no sense given amazing earnings, making it a great buying opportunity. Per Jonah Lupton, revenue rose 61% to $805M against $730M expected, EBITDA rose 107% to $343M, and Q3 revenue guidance of $865M topped the $829M estimate. x.com