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Barchart

Mark R. Hake, CFA

Reddit's Tumble Has Been Overdone After It Produced Strong FCF - RDDT Could be 40% Too Cheap

RDDT Reddit Barchart Reddit Inc Yahoo Finance

Reddit, Inc. (RDDT) generated a strong Q2 FCF margin (32.4%) - see page 21 of its shareholder letter. And for the trailing 12-month (TTM) period, its FCF margin was 36.7%, with very little capex.

So why did RDDT stock tumble 20% on Friday? That was too much, and value investors knew this. So, on Monday it was up 10%. It could still be worth over 40% more.

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