Branson Schonfeld

[Jonah Lupton @JonahLupton]

$RDDT was already our biggest position coming into this week... we just added to our position (quite substantially) after reviewing the final alt data numbers for Q2 (from multiple sources) as well as early Q3 alt data.

All of the alt data sources we're paying for have Q2 revenues at 55-60% YoY vs consensus at 46% YoY.

On top of that it looks like revenue growth is accelerating through the first 10 days of Q3 (still early)

I can't think of another internet/tech company that has more positive catalysts on the horizon than $RDDT --
1) Q2 beat & raise
2) Q3 beat & raise
3) S&P 500 inclusion
4) new deal with Anthropic
5) revised/bigger deal with Gemini
6) revised/bigger deal with OpenAi
7) multiple expansion

I have $RDDT doing $7.60 EPS this year which is 67% YoY growth... this means $RDDT is now trading at 26x CY2026 EPS with $3B in cash and no debt... if you include the cash it means $RDDT is currently trading at less than 24x CY2026 EPS... looking ahead to next year... $RDDT is currently trading at less than 19x CY2027 EPS (excluding cash) and close to 16x CY2027 EPS (including cash)... with an EPS CAGR of 54% over the next 2 years (not including buybacks which would juice the number even higher)

If most of the catalysts above play out as expected then I think $RDDT has at least 50% upside through year end and maybe more... personally I think $RDDT should be trading at 42x NTM EPS (or higher) given their fundamentals, growth rates, margins, stock buybacks, balance sheet and upcoming catalysts which means the stock is 60% undervalued at current prices.

[Branson Schonfeld @Action_Branson_]

@GlennGeraci I don’t know how to vote