RDDT is insanely under valued, Price Target: 428

For full-year 2026, this fiscal year, Reddit is projected to have $1.02 billion in net income and $3.23 billion in revenue. Let’s strip out the current AI deal of $100 million and assume a 30% tax rate. That would bring net income to about $995 million, giving them margins of 32.5%. Let’s say growth slows down to 45% (Which I don't think it will), which is well below what they are currently growing at. That would bring revenue up to $4.6 billion. Applying a 32.5% margin gets you $1.495 billion i