Reddit seen as strong rebound pick despite 30% YTD drop amid AI concerns, with solid growth and profitability.

Reddit remains a promising rebound investment despite a 30% year-to-date decline driven by fears around AI disruption. The company posted a Rule of 40 score of 104% in Q2, highlighting strong growth and profitability supported by over 90% gross margins and disciplined operating expenses. Valuation is attractive at 8.0x FY26 EV/revenue and 18.6x EV/EBITDA, with revenue expected to grow 53% in FY26 alongside expanding margins. While AI-driven search challenges persist, Reddit's focused app usage, 36% year-over-year ARPU growth, and rising adjusted EBITDA margins underpin a positive outlook.

Reddit Inc (RDDT) trades at USD 149.50 on Pluang as of Oct 07, 2026, 22:32 WIB, showing a modest 1-day gain of 0.40%. This price remains significantly below its 52-week high of USD 258.93 but comfortably above the 52-week low of USD 121.84, indicating a wide trading range over the past year. The platform data also reveals a strong buying interest with 100% of orders being buys and a typical hold time of 25 days, suggesting investor confidence despite the stock's 30% year-to-date decline mentioned in the article.