Value
4.5/10data confidence 100%| Component | Sub-score |
|---|---|
| P/E | 2.5 |
| P/S | 0.9 |
| EV/EBITDA | 0.0 |
| Fwd P/E | 6.6 |
| PEG | 6.0 |
| Analyst target | 7.5 |
- ▸Forward P/E: 19.3x
- ▸PEG: 1.26
RDDT · Why this verdict
Why Reddit (RDDT) is rated BUY WAIT
Updated
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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VerdictBUY WAIT
Overall score6.5/10
ConfidenceMEDIUM
MacroNEUTRAL
Per-dimension breakdown
Quality
8.6/10data confidence 100%| Component | Sub-score |
|---|---|
| ROE | 8.7 |
| ROA | 8.7 |
| Gross margin | 10.0 |
| Op margin | 10.0 |
| Net margin | 10.0 |
| Current ratio | 5.0 |
| FCF quality | 6.0 |
| Moat | 8.2 |
| Rule of 40 | 9.5 |
| Piotroski F | 10.0 |
- ▸Excellent ROE: 26%
- ▸Strong margins: 29%
- ▸Earnings quality warning: 80% FCF/NI
- ▸Wide economic moat
Growth
10.0/10data confidence 33%| Component | Sub-score |
|---|---|
| Rev growth | 10.0 |
- ▸Strong growth: 69% YoY
Momentum
4.5/10data confidence 100%| Component | Sub-score |
|---|---|
| RSI | 4.5 |
| MACD | 10.0 |
| OBV | 1.0 |
| MA position | 6.0 |
| Volume | 1.1 |
- ▸Volume distribution (falling OBV)
- ▸Below 200-MA, MA slope -2.5%/30d — confirmed downtrend
Sentiment
7.3/10data confidence 100%| Component | Sub-score |
|---|---|
| LLM sentiment | 6.0 |
| Analyst rating | 7.5 |
| Price target | 8.4 |
- ▸Analyst upside: 28%
Insider
5.0/10data confidence 50%| Component | Sub-score |
|---|---|
| materiality | 5.0 |
| holder change | 5.1 |
- ▸No net insider activity — $0 (0.000% of mkt cap)
Peer rank
6.3/10data confidence 80%| Component | Sub-score |
|---|---|
| value rank | 1.1 |
| quality rank | 7.7 |
| growth rank | 9.6 |
- ▸Industry growth leader
Technical
2.7/10data confidence 100%| Component | Sub-score |
|---|---|
| bollinger | 3.2 |
| support resistance | 2.5 |
| 52w position | 2.4 |
Risk (lower is worse)
4.6/10data confidence 100%| Component | Sub-score |
|---|---|
| short interest | 5.2 |
| days to cover | 8.7 |
| volatility | 0.0 |
| put call | 4.3 |
| implied vol | 0.7 |
| max pain risk | 7.0 |
| beta | 3.6 |
| debt equity | 7.0 |
- ▸High IV: 76%
Catalyst
7.6/10data confidence 100%| Component | Sub-score |
|---|---|
| erm | 5.0 |
| earnings history | 10.0 |
| earnings timing | 5.0 |
| surprise avg | 10.0 |
| news activity | 8.0 |
- ▸Perfect beat streak: 4Q
How the verdict was assembled
Engine trigger
Growth is cheap relative to earnings, but the technical setup has not yet produced a breakout above resistance (PEG 1.26, quality 8.6/10, growth 10.0/10).
Engine technical detail
verdict_path:
L4:PATH_C2_GARP_WAITPassed (7)
- MOMENTUM:4.5>=4.5
- INSIDER:OK
- 8K:CLEAN
- NEWS_EVENTS:NONE_RECENT
- EARNINGS_PROXIMITY:43d clear
- SEMI_CYCLE_PEAK:CLEAR
- MATERIALS_CYCLE_PEAK:CLEAR
Failed (2)
- ASYMMETRY:1.2<1.5@spot
- DEATH_CROSS:HARD_BLOCK
Warning (1)
- MOMENTUM:4.5<5.5 (soft — BUY_NOW allowed but watch)
Reward-to-Risk
1.20
Upside
+18.0%
Downside
15.0%
Sizing output
STARTER
SetupRECOVERY — Death cross but MACD improving, RSI 60
EdgeNO_EDGE — No clear edge identified
SuitabilityAGGRESSIVE — Beta 1.91>1.3
Investment implication
The C-path quality+growth combination triggered the STRONG_BUY_WAIT verdict: quality 8.6 and growth 10.0 both clear their thresholds, with asymmetric R:R of 1.20 supporting the read.
The strongest dimensions are Growth at 10.0, Quality at 8.6, and Catalyst at 7.6; the weakest are Technical at 2.7, Momentum at 4.5, and Value at 4.5. The V9 engine flagged 2 failed gates with 1 warning, producing an asymmetric reward-to-risk of 1.20 and an engine sizing output of STARTER.