Reddit: I Expect Shares To Rebound Aggressively
Portfolio Pulse from
Reddit shares have dropped by 40%, offering a potential buying opportunity for long-term investors. The company is characterized by strong growth, brand equity, network effects, and low capital expenditure, making it scalable and profitable. Projected free cash flow for 2027 is $900-1,200 million, indicating a forward multiple of 18-23x.
March 14, 2025 | 8:00 pm
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Reddit shares have decreased by 40%, which may attract long-term investors due to the company's strong growth potential and profitability. The projected free cash flow for 2027 suggests a forward multiple of 18-23x, indicating potential undervaluation.
The 40% drop in Reddit's share price presents a potential buying opportunity for investors, especially given the company's strong growth metrics and profitability. The projected free cash flow for 2027 and the forward multiple suggest that the stock may be undervalued, which could lead to a rebound in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100