Avoid RDTL and go long on RDDT. The fact remains: this is the absolute best time to buy.
While Reddit's (RDDT) EPS soared by 244%, rising from $0.36 in Q4 2024 to $1.24 in Q4 2025, the stock price paradoxically dropped from $214 to $140. This shift caused its Run-rate PER to plummet by 5.2 times, falling from 148 to 28. Despite achieving a staggering 244% year-over-year EPS growth, Reddit's current valuation-reflected in its ratio (PER)-suggests that the market is valuing the company on par with small-to-mid-cap tech stocks that exhibit only marginal growth. In fact, a Korean weekend stock market show recently named Reddit the most undervalued US stock relative to its growth and stability. However, the program advised against buying RDTL (which supports long positions), noting that the current price volatility is a result of heavy options and leverage volume, warning that further volatility could be on the horizon.