Reddit remains a strong buy despite a 30% drop, driven by solid growth and high profitability.

Reddit (RDDT) has seen its stock decline 30% year-to-date but remains a compelling buy due to its strong fundamental performance and robust user growth. The platform stands out with active, topic-based discussions that attract valuable users for advertisers. Reddit boasts over 90% pro forma gross margins and a Rule of 40 score exceeding 100, indicating exceptional growth and profitability. Its minimal capital expenditure and international expansion through machine translation position it well for scalable revenue and margin growth.