Trump Tariffs: Buy This Unstoppable Stock at a Discount

Core Viewpoint - Reddit stock has experienced significant volatility, dropping 38% recently, but is now considered a potential buying opportunity due to its current valuation and growth prospects [5][6][11]. Company Performance - Reddit reported a 71% year-over-year revenue increase to $427.7 million, with daily users up 39$0.36, exceeding expectations, and free cash flow turned positive at $89 million [10]. Growth Projections - Analysts forecast a 50$210 per share, which is 61% above its recent closing price of $130 [11][12]. Financial Metrics - Reddit is currently valued at$23 billion, or $20.4 billion net of cash, trading at 94 times its trailing free cash flow of$216 million [12]. - Free cash flow is projected to grow to $523 million this year, representing a 142% increase over 2024, indicating that Reddit's free cash flow is growing four times faster than sales [13]. Strategic Initiatives - Reddit is implementing new tools to enhance user engagement and improve advertising capabilities, which could drive higher revenue per user [7][8]. - The company is focusing on mitigating risks associated with potential revenue slowdowns due to changes in search engine rankings [6]. Market Context - The broader market has been affected by tariff-related concerns, but Reddit's business model appears largely insulated from these issues, making it a unique opportunity in the current environment [9].