Normally, I write a long post explaining my point of view. I'm new to Reddit and want to do the opposite and not bias anyone. This is my first post in r/ValueInvesting.
Here are a few facts:
* Reddit crushes the rule of 40 score.
* Revenues grew 70% y/y in Q1 2026
* 38% Adj EBITDA margin in 2025
* ADJ EBITDA grew 130% y/y in Q1 2026
* There's essentially no capex and OCF was >$300MM in Q1
* $1.2Bn in expected FCF for 2026
* That's a 4% FCF yield based on the current market cap
* $2.8Bn in cash, against $0 debt
And the concerns
* North American DAU has slowed to about flat
* AI (will it be good or bad)
Value investing doesn't mean low P/E, low P/B... if you are Charlie Munger/Henry Singleton you buy great businesses at fair prices. Is that where we are? If not, how far above or below are we?