Looking at revenue and profit growth, there are hardly any companies trading below a 50x revenue multiple (e.g., Palantir). Reddit is currently at around a 10x P/S, which could drop to \~6x over the next 12 months, with a forward P/E close to 25x.
At the same time, Reddit has relatively low risk of disruption from AI compared to most SaaS companies. Marketing platforms tend to be durable, especially when user growth is strong - and Reddit is one of the few social platforms that is still actually growing.
The biggest “problem” is the high retail ownership, which tends to swing depending on market sentiment. Still, I believe that within 2-3 years the stock could be above $300, and we may look back at early 2026 the same way we now look at 2022 for Meta Platforms at $90.