RDDT$134.13
$135.01
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Performance
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AI RDDT Summary
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Powered by LiveAIOverall Analysis
BuyReddit shows strong thematic alignment with online community growth and significant revenue potential. Fundamentals are improving, but current valuation metrics and short-term technical indicators suggest a cautious approach.
Thematic
Reddit is at the forefront of online community engagement and monetization, with significant growth potential in advertising and future ventures. Its platform fosters strong user retention and network effects.
Fundamental
Reddit's financial performance shows improving revenue, but it is still operating at a net loss. The company has a healthy cash position and manageable debt, but profitability remains a key area for improvement.
Technical
The stock has experienced significant volatility since its IPO. While it has recovered from its lows, it is currently trading below key moving averages, suggesting a neutral to slightly bearish short-term outlook.
| Factor | Score |
|---|---|
| Online Community & Engagement | 95 |
| Monetization Strategy | 80 |
| Platform Innovation | 75 |
| Market Position | 85 |
| Data Monetization Potential | 85 |
| Factor | Score |
|---|---|
| Valuation | 40 |
| Profitability | 20 |
| Growth | 85 |
| Balance Sheet Health | 95 |
| Cash Flow | 60 |
| Factor | Score |
|---|---|
| Trend Analysis | 40 |
| Momentum | 50 |
| Volume Confirmation | 60 |
| Support & Resistance | 70 |
| Short-Term Performance | 55 |
AI Investing Checklist
Powered by LiveAIBullish Points (6)
Positive EPS Surprises
The company has consistently exceeded earnings per share (EPS) estimates. For example, in Q2 2025, reported EPS was $0.13 against an estimate of $0.02, a surprise of 504.65%.
Improving P/S Ratio
The Price/Sales (P/S) ratio has shown a decreasing trend from 39.6 in 2021 to 16.3 in 2024, suggesting the market is valuing revenue more efficiently over time.
Bearish Points (6)
High P/E Ratio and Negative Net Income
Despite revenue growth, the company has consistently reported net losses in recent years (e.g., -$484 million in 2024). The Price-to-Earnings (P/E) ratio on a trailing twelve months (TTM) basis is 215.1, and negative in annual periods, indicating that the stock is very expensive relative to current earnings.
Negative Profitability and Margin Compression
The company has experienced significant net losses and negative net margins (e.g., -37.2% in 2024). Operating expenses have outpaced revenue growth, leading to substantial operating losses (-$560 million in 2024).
Calendar
August 2025
1
Next Earnings Date
H: $0.72
A: $0.69
L: $0.65
H: 443.00M
A: 425.27M
L: 419.00M
Profile
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
Seasonals
Price Target
152.75 USD
The 39 analysts offering 1 year price forecasts for RDDT have a max estimate of 220.00 and a min estimate of 75.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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