Tearsheet

Reddit (RDDT)

Market Price (12/4/2025): $219.74 | Market Cap: $41.3 Bil
Sector: Communication Services | Industry: Interactive Media & Services

Reddit (RDDT)

Market Price (12/4/2025): $219.74
Market Cap: $41.3 Bil
Sector: Communication Services
Industry: Interactive Media & Services

Investment Highlights Why It Matters Which of these 2 stories sounds closer for this stock?

1. Generates cash flow

The stock generated 4% or more of the share price (called cash flow yield), and shows moderate 10-15% or more growth.

2. Riding a trend

Think Tesla during the pandemic of 2020 when EVs were riding a cultural high, or Nvidia in the current AI boom, or even Figma. These companies don’t have enough yield, or, enough growth, or both - however - they are riding a trend. They have momentum. These can be more volatile - they don’t have the floor of strong cash flow

0	Strong revenue growth Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 70%	Expensive valuation multiples P/SPrice/Sales ratio is 23x, P/EBITPrice/EBIT or Price/(Operating Income) ratio is 164x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 84x, P/EPrice/Earnings or Price/(Net Income) is 124x
1	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 27%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%	Valuation getting more expensive P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 72%
2	Megatrend and thematic drivers Megatrends include Social Media & Creator Economy. Themes include Social Media Platforms, Creator Economy Monetization, and Ad-Tech Platforms.	Yield minus risk free rate is negative ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.4%

0	Strong revenue growth Rev Chg LTMRevenue Change % Last Twelve Months (LTM) is 70%
1	Attractive cash flow generation CFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 27%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 27%
2	Megatrend and thematic drivers Megatrends include Social Media & Creator Economy. Themes include Social Media Platforms, Creator Economy Monetization, and Ad-Tech Platforms.
3	Expensive valuation multiples P/SPrice/Sales ratio is 23x, P/EBITPrice/EBIT or Price/(Operating Income) ratio is 164x, P/CFOPrice/(Cash Flow from Operations). CFO is cash before capital expenditures. is 84x, P/EPrice/Earnings or Price/(Net Income) is 124x
4	Valuation getting more expensive P/S 6M Chg %Price/Sales change over 6 months. Declining P/S indicates valuation has become less expensive. is 72%
5	Yield minus risk free rate is negative ERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -3.4%

Valuation, Metrics & Events

	12/4/25	2024	2023	2022	2021
Share Price CYE	$219.74	$163.44
Market Cap CYE ($ Bil)	41.3	29.0	-	-	-
Total Debt ($ Bil)	0.0	0.0	0.0	0.0	0.0
Total Cash ($ Bil)	2.2	1.8	1.2	1.3	1.4
Enterprise Value ($ Bil)	39.1	29.0
Valuation Ratios
P/S TTM	22.6	18.3	0.0	0.0	0.0
P/EBIT TTM	163.6	-42.4	0.0	0.0	0.0
P/E TTM	123.2	-49.1	0.0	0.0	0.0
Sector Ratios
P/S TTM (Sector)	1.1	1.1	1.1	1.2	2.0
P/EBIT TTM (Sector)	1.3	1.9	0.3	1.1	4.6
P/E TTM (Sector)	-0.9	-0.9	-0.6	-0.4	5.8

	12/4/25	2024	2023
Share Price CYE	$219.74	$163.44
Market Cap CYE ($ Bil)	41.3	29.0	-
Total Debt ($ Bil)	0.0	0.0	0.0
Total Cash ($ Bil)	2.2	1.8	1.2
Enterprise Value ($ Bil)	39.1	29.0
Valuation Ratios
P/S TTM	22.6	18.3	0.0
P/EBIT TTM	163.6	-42.4	0.0
P/E TTM	123.2	-49.1	0.0
Sector Ratios
P/S TTM (Sector)	1.1	1.1	1.1
P/EBIT TTM (Sector)	1.3	1.9	0.3
P/E TTM (Sector)	-0.9	-0.9	-0.6

	RDDT	S&P 500
REVENUE GROWTH	VERY GOOD
Rev LTM ($ Bil)	1.9
Rev Chg Q	67.9%	7.1%
Rev Chg LTM	69.7%	6.1%
Rev Chg 3Y Avg	45.3%	5.5%
PROFITABILITY	FAIR
Op Inc LTM ($ Bil)	0.3
CFO LTM ($ Bil)	0.5
Net Inc LTM ($ Bil)	0.3
Op Mgn LTM	13.8%	18.8%
CFO/Rev LTM	27.0%	20.5%
Net Inc Mgn	18.3%	13.1%
VALUATION	VERY HIGH
P/S	22.6	3.2
P/CFO	83.7	15.8
P/FCF	84.4	20.5
P/E	123.2	23.5
STABILITY	VERY GOOD
Debt/Equity	0.00	0.20
Cash/Assets	0.77	0.07

AI Generated Analysis | Feedback

Metric	Value	Date	Source
Daily Active Uniques (DAUq)	116.0 million	9302025	Link
Weekly Active Uniques (WAUq)	444 million	9302025	Link
Average Revenue Per User (ARPU)	US $5.04	9302025	Link
U.S. Average Revenue Per User (ARPU)	$9.04	9302025	Link
International Average Revenue Per User (ARPU)	$1.84	9302025	Link
Active Communities	100,000+	10302025	Link
Weekly Search Users	75 million+	9302025	Link
International Daily Active Uniques (DAUq) Year-over-Year Growth	31%	9302025	Link
U.S. Daily Active Uniques (DAUq) Year-over-Year Growth	7%	9302025	Link

Upcoming
2/11/2026	Earnings Release	Rev: - EPS: -

RDDT Stock

Return (1M):

Why The Stock Moved

Qualitative Assessment

AI Generated Analysis | Feedback

Based on the most recent available information regarding Reddit (RDDT) and general market dynamics, a -1.9% stock movement could be attributed to several factors.

1. Persistent Monetization Challenges: Despite efforts to increase advertising revenue, Reddit continues to face challenges in fully monetizing its large user base. This is due in part to a significant portion of its users being resistant to traditional advertising and concerns among advertisers about brand safety on the platform given the diverse and often unfiltered content. These ongoing difficulties can lead to investor apprehension regarding long-term revenue growth potential.

2. Growing Net Losses Amidst Increased Spending: While Reddit has shown strong revenue growth, it also reported a substantial net loss in 2024, significantly higher than the previous year, alongside increased spending on sales and marketing efforts. Investors may react negatively to a widening loss, even with revenue gains, if it signals a potentially unsustainable path to profitability or higher-than-expected costs of user acquisition and engagement.

3. User Experience vs. Monetization Balance: Reddit's strategic shifts towards enhanced monetization, such as introducing search ads and a mixed content feed, have sparked debates among users. Concerns that these changes could compromise the platform's authentic user experience and potentially alienate its core communities could lead to investor worry about sustained user engagement, a critical factor for social media platforms.

4. Market Valuation Concerns and Profit-Taking: Even when a company shows positive developments, minor stock pullbacks can occur if the market perceives the stock as overvalued following previous gains, or due to general market sentiment and profit-taking by investors. For instance, Reddit's stock struggled in after-hours trading following its Q2 2024 earnings report, despite beating revenue and EPS expectations. Some analyses have also suggested Reddit appeared fairly valued or overvalued at certain points.

5. Reliance on Advertising and External Traffic Sources: Reddit's business model heavily relies on advertising revenue and its dependence on external sources like Google search for traffic. Any perceived weakness in the broader digital advertising market or potential changes in search engine algorithms could present risks to its revenue streams, making the stock susceptible to minor negative adjustments.

Show less

Stock Movement Drivers

Fundamental Drivers

The -1.0% change in RDDT stock from 9/3/2025 to 12/3/2025 was primarily driven by a -37.8% change in the company's P/E Multiple.

	9032025	12032025	Change
Stock Price ($)	223.14	220.84	-1.03%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	1668.05	1904.61	14.18%
Net Income Margin (%)	12.97%	18.33%	41.34%
P/E Multiple	191.26	118.94	-37.82%
Shares Outstanding (Mil)	185.44	188.04	-1.40%
Cumulative Contribution			-1.05%

LTM = Last Twelve Months as of date shown

Market Drivers

9/3/2025 to 12/3/2025

	Return	Correlation
RDDT	-1.0%
Market (SPY)	6.2%	54.1%
Sector (XLC)	1.8%	55.4%

Fundamental Drivers

The 86.8% change in RDDT stock from 6/4/2025 to 12/3/2025 was primarily driven by a 127.2% change in the company's Net Income Margin (%).

	6042025	12032025	Change
Stock Price ($)	118.21	220.84	86.82%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	1449.60	1904.61	31.39%
Net Income Margin (%)	8.07%	18.33%	127.23%
P/E Multiple	183.99	118.94	-35.36%
Shares Outstanding (Mil)	182.02	188.04	-3.31%
Cumulative Contribution			86.62%

LTM = Last Twelve Months as of date shown

Market Drivers

6/4/2025 to 12/3/2025

	Return	Correlation
RDDT	86.8%
Market (SPY)	15.1%	34.0%
Sector (XLC)	12.9%	38.6%

Fundamental Drivers

The 47.4% change in RDDT stock from 12/3/2024 to 12/3/2025 was primarily driven by a 69.7% change in the company's Total Revenues ($ Mil).

	12032024	12032025	Change
Stock Price ($)	149.83	220.84	47.39%
Change Contribution By	LTM	LTM
Total Revenues ($ Mil)	1122.25	1904.61	69.71%
P/S Multiple	22.59	21.80	-3.46%
Shares Outstanding (Mil)	169.17	188.04	-11.16%
Cumulative Contribution			45.56%

LTM = Last Twelve Months as of date shown

Market Drivers

12/3/2024 to 12/3/2025

	Return	Correlation
RDDT	47.4%
Market (SPY)	14.3%	54.2%
Sector (XLC)	16.0%	53.0%

Fundamental Drivers

null
null

Market Drivers

12/4/2023 to 12/3/2025

	Return	Correlation
RDDT
Market (SPY)	53.2%	41.7%
Sector (XLC)	69.5%	40.8%

Return vs. Risk

Price Returns Compared

	2020	2021	2022	2023	2024	2025	Total [1]
Returns
RDDT Return	-	-	-	-	-	36%	36%
Peers Return	43%	24%	-25%	25%	3%	7%	83%
S&P 500 Return	16%	27%	-19%	24%	23%	16%	112%
Monthly Win Rates [3]
RDDT Win Rate	-	-	-	-	67%	60%
Peers Win Rate	27%	35%	18%	35%	27%	65%
S&P 500 Win Rate	58%	75%	42%	67%	75%	70%
Max Drawdowns [4]
RDDT Max Drawdown	-	-	-	-	-	-47%
Peers Max Drawdown	-13%	-12%	-28%	-8%	-17%	-19%
S&P 500 Max Drawdown	-31%	-1%	-25%	-1%	-2%	-15%

[1] Cumulative total returns since the beginning of 2020
[2] Peers: Z, ZIP, STUB, WSHP, GOOGL.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2025 data is for the year up to 12/3/2025 (YTD)

How Low Can It Go

RDDT has limited trading history. Below is the Communication Services sector ETF (XLC) in its place.

Unique Key	Event	XLC	S&P 500
2022 Inflation Shock	2022 Inflation Shock
2022 Inflation Shock% Loss	% Loss	-47.2%	-25.4%
2022 Inflation Shock% Gain to Breakeven	% Gain to Breakeven	89.5%	34.1%
2022 Inflation ShockTime to Breakeven	Time to Breakeven	602 days	464 days
2020 Covid Pandemic	2020 Covid Pandemic
2020 Covid Pandemic% Loss	% Loss	-30.1%	-33.9%
2020 Covid Pandemic% Gain to Breakeven	% Gain to Breakeven	43.2%	51.3%
2020 Covid PandemicTime to Breakeven	Time to Breakeven	112 days	148 days
2018 Correction	2018 Correction
2018 Correction% Loss	% Loss	-24.8%	-19.8%
2018 Correction% Gain to Breakeven	% Gain to Breakeven	32.9%	24.7%
2018 CorrectionTime to Breakeven	Time to Breakeven	326 days	120 days

Compare to

In The Past

The Communication Services Select Sector SPDR Fund's stock fell -47.2% during the 2022 Inflation Shock from a high on 9/1/2021. A -47.2% loss requires a 89.5% gain to breakeven.

Preserve Wealth

Limiting losses and compounding gains is essential to preserving wealth over time.

Asset Allocation

Actively managed asset allocation strategies protect wealth. Learn more.

About Reddit (RDDT)

Our mission is to bring community, belonging, and empowerment to everyone in the world. We built Reddit with the belief that communities unlock the power of human creativity and create a sense of belonging and empowerment for their members. Our over 100,000 active communities have channeled the power of human creativity to grow Reddit since our founding. We believe the world needs community more than ever, and that this represents our greatest opportunity to further enrich the lives of everyone in the world. The Power of Reddit’s Communities Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. People are diverse and have multiple interests. Just like in a city, where citizens are part of multiple subcommunities, on Reddit, users often belong to multiple communities. At Reddit, users can dive into anything, and if a community does not already exist around a particular topic, they can create one. In December 2023, more than 500 million visitors(1), and in the three months ended December 31, 2023, an average of 73.1 million daily active uniques (“DAUq”), around the world came together on Reddit – continuously adding to our longstanding and constantly evolving human archive of information. They come together to share the rhythm of their daily discoveries, ask questions and receive advice, research before making a purchase decision, hear reactions to recent events, and thrive as a community. Built on shared interests, passion, and trust, Reddit has a community for everyone. Communities on Reddit are organized based on specific interests and are called subreddits. Within subreddits, Redditors engage in active and in-depth conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another in comment threads on any topic. Subreddits are denoted by an “r/” before their names: r/ explainlikeimfive helps people learn anything with child-friendly explanations; r/ lgbt helps people find their identity; and r/ BeyondTheBump helps people transition from pregnancy to parenthood. Redditors invest time to shape their communities, share their experiences, send support and supplies when someone is down on their luck, and even code scripts and develop tools to advance their communities. Similar to how cities are made from cement and steel, but are really built by their citizens, Reddit is made from code and algorithms, but is really built by our users. It is a place where human ingenuity and creativity thrive. We empower users to participate and to shape Reddit by sharing content, upvoting or downvoting, and commenting. In addition, Redditors themselves not only create and build communities, but they also moderate these communities as volunteers to help keep them safe, vibrant, and true to themselves. Like cities, we design tools that give communities what they need to make their communities their own and evolve over time, rebuilding and reshaping by adapting to new technologies and reflecting new cultural trends. Newly created subreddits create a sense of belonging for their members, spurring the creation of more new subreddits to continue the cycle. In this way, Reddit’s community ecosystem grows and expands with the interests and passions of our users, keeping Reddit on trend and resilient to fading fads. Reddit’s community ecosystem is organically built upon shared interests, passions, and trust rather than friends, celebrities, and their followers. This distinction results in a unique sense of belonging, privacy, and authenticity for our users. We do not require that users disclose their identities, freeing them from having to perform and the associated pressures to always appear perfect. As a result, users come to Reddit for fundamentally distinct purposes, with each adding incremental value to our entire community. Redditors are free to be vulnerable or ask questions they would not be able to ask anywhere else. Powerful Advertising Engine Built Around Context and User Interest These qualities not only make the experience more enjoyable for users, they also make Reddit a unique platform for advertisers due to our intentional, authentic, trusted nature and our strength in contextual and interest-based advertising. For advertisers, we provide access to a unique and highly engaged audience where our trusted, passionate communities drive recommendations on brands and buying decisions. Whether users come to Reddit through a third-party search engine or if they initiate their search on Reddit, our users often have high intent – they are looking for answers or recommendations that they can trust, and these users can benefit from the conversations and contextual ads that are displayed on Reddit. According to a 2023 survey we commissioned of 4,000 U.S. Redditors aged 18 and older (the “Vertical Path to Purchase Survey”), 75% of respondents said they believe Reddit is a trustworthy place to inform their decision to buy a new product across specified consumer product categories. A Valuable Source of Conversational Data and Knowledge Over time, Reddit has evolved to become one of the internet’s largest corpuses of information, with over one billion posts and over 16 billion comments through December 31, 2023, and an average of 1.2 million posts daily and 7.5 million comments daily in 2023. Reddit was also among the top ten most-visited sites in the United States in December 2023, according to Similarweb. Our content is particularly important for artificial intelligence (“AI”) – it is a foundational part of how many of the leading large language models (“LLMs”) have been trained. Furthermore, we use internally built and trained models to improve many aspects of Reddit, including user onboarding, content translation, and moderation and safety. Our massive corpus of conversational data and knowledge is what makes us unique, and we believe its value will continue to grow over time as our user-generated data continues to grow. Entrepreneurial User Economy Commerce is another area of growth that has emerged organically on Reddit. In fact, new community-based marketplaces have already sprung up specifically for commercial purposes, such as r/ PhotoShopRequest, where users can request photoshop services for payment, or r/ RandomActsofCards, where users request and send cards to each other and spread a little bit of joy around the world. We want to develop this user-powered economy on Reddit by providing our users and creators with the requisite tools and incentives to drive continued creation, improvements, and commerce. In turn, we believe these initiatives will open additional monetization channels for us. Our high gross margin and capital-efficient business model is simple and scalable and allows us to invest deliberately in our global opportunity. Why Users Come to Reddit The internet has given people the tools to redefine how we live. We have search engines to find content and social networks to share and follow each other. Our community of communities sets itself apart with its unique combination of characteristics and is designed to provide users with a trusted place to be authentic to themselves in sharing and discovering while maintaining their privacy. Open, Growing Archive of Human Knowledge (2005– ) Over the last 18 years, Reddit has become one of the internet’s largest open archives of human experiences. With over one billion posts and over 16 billion comments organized into communities, Reddit content provides authentic, human perspectives across almost any topic imaginable. Our constantly updated user-generated content provides a vast collection of human experiences, answers, and conversations and provides a source of fresh ideas. Reddit’s influence and relevance organically grows, and Reddit quickly responds to new topics based on real experiences. Topical communities such as r/ travel, r/ vanderpumprules, r/ MachineLearning, r/ cricket, r/ boxoffice, and r/ TaylorSwift have had meaningful breakouts as the headlines have evolved. As a result of Reddit’s scale and longevity, our content library is a broad memory of human interest, organically expanding and deepening into more topics. At times, Reddit may be the only place to find the information users are looking for, and users searching for information often come to Reddit and discover conversations taking place there. Centered on Interests, with Unmatched Breadth and Depth of Human Knowledge Time spent on Reddit is guided by personal intention and interests. Breadth of communities and depth of engagement means that Redditors benefit from a trove of knowledge organized by topic that we believe is unmatched by any other internet platform. Reddit is home to over 100,000 active subreddits, with over 500 subreddits that each have at least one million subscribers, which cover a wide variety of topics—r/ wholesomememes, r/ philosophy, r/ Pets, r/ InteriorDesign, r/ NBA, and r/ worldnews, to name a few—and can be creative, humorous, informative, inspirational, absurd, serious, or contemplative. We generally find that the longer Redditors have been on Reddit, the more engaged they become. As of December 2023, when someone first makes an account, the average active minutes for logged-in users on Reddit starts at approximately 20 minutes per day, but increases to over 35 minutes a day for those who have been on Reddit for over five years and even over 45 minutes a day for those who have been on Reddit for over seven years. According to a 2023 survey we commissioned of almost 800 U.S. Redditors (the “User Perceptions Survey”), 95% of respondents said there is a community for everyone on Reddit, 85% said Reddit is where they learn about the topics they love the most, and 83% recognized conversations on Reddit as more on-topic than anywhere else on social media, each result being higher than what respondents say for other major social media platforms. People-powered Curation for Authentic Interactions and Trusted Content Our differentiated community approach underlies the interactions on our platform: Reddit is centered around human creativity and belonging. The content found in Reddit communities is curated by people, creating a highly relevant content experience that attracts users to our platform. Every post and comment on Reddit, regardless of the author, starts with one upvote, and must earn its visibility through community members upvoting it and boosting it to the subreddit’s front page. Unlike traditional social media, voting (both up and down) is completely anonymous, encouraging broader Redditor participation. This unique upvoting and downvoting system not only curates the quality and relevance of content, but also determines the prominence of a certain piece of content. According to the User Perceptions Survey, 76% of respondents pay more attention to things they see on Reddit than the things they see on other social media platforms. In a separate survey we commissioned of almost 500 U.S. Redditors, 76% of respondents agreed that “people post things that are honest and truthful,” which was higher than each of Facebook, Instagram, Snapchat, TikTok, X, and YouTube. We believe community-driven promotion of content leads to greater trust of the content on Reddit. Authentic and Trusted Recommendations Reddit’s community-powered recommendations are a foundational part of why so many users visit Reddit on a daily basis. In a world where consumers are increasingly inundated with curated messaging and product placement, Reddit stands out as a refreshing alternative, offering authentic human recommendations that people can actually trust. We see that trust reflected in the high velocity of people coming to Reddit to find great content and trusted recommendations. In 2023, every second an average of two users asked for a recommendation, each yielding an average of 14 personalized responses. According to a 2023 survey we commissioned of Redditors across the United States, the United Kingdom (the “UK”), Australia, Canada, and Germany aged 18 and over, 94% of 4,500 respondents reported that they engaged with recommendation content on Reddit in the last year, and 73% of 1,845 respondents said they are likely to follow the guidance of recommendations they receive on Reddit when considering an important purchase. Flexible Canvas for Self- and Community-expression Every subreddit is a flexible canvas for communities to express themselves through a customizable experience. We give communities the ability to choose the format for conversations in their communities—text, image, video, opinion polls, chatrooms—which enables them to create dynamic and engaging experiences. We give moderators the creative tools to design the look and feel of communities, and we give developers an open application programming interface (“API”) to build bots and create features that shape their communities, meaning what a community envisions for itself drives its unique development. Conversations flow across Reddit through cross-posting, where a post from one community can be shared into another community to spur new conversation with a different audience. Layered Moderation, Community Management, and Safety Supports Trust We are committed to continuously enhancing our policies and processes to promote the safety of users and moderators, and the health of our platform. Our approach is akin to a democratic city, wherein everyone has the ability to vote and self-organize, follow a set of common rules, and establish community-specific norms. This approach gives Redditors a voice and agency in the process and also means that any content that gains traction on Reddit has been reviewed in context by humans. Communities self-organize and create subreddit-level rules that are tailored to their unique circumstances, and volunteer moderators within the community enforce those rules. Moderators have context as leaders and members of their communities to define and enforce the rules to create a harmonious community experience. The result is that each community has its own unique environment in which Redditors can express their genuine perspective and share real experiences while discouraging bad behavior. We backstop this bottoms-up organic moderation engine with our site-wide Content Policy, a set of overarching rules and policies that govern all content on Reddit. Our Content Policy is intended to be protective, not intrusive. It helps protect against harassment, bullying, and violence – especially hate based on identity or vulnerability. (1) Each visitor is a user whom we can identify with a unique identifier who has visited a page on the Reddit website or opened a Reddit application at least once during the month. We use unique identifiers to deduplicate multiple visits from the same visitor. Our monthly visitor number involves a similar calculation process as our weekly active unique (“WAUq”) metric and daily active unique (“DAUq”) metric, except over a longer period of time. We were incorporated as a Delaware corporation in May 2011. Our principal executive offices are located at 303 2nd Street, South Tower, 5th Floor, San Francisco, California.

AI Generated Analysis | Feedback

Here are 1-2 brief analogies for Reddit:

Facebook, but for anonymous, topic-based communities instead of friends.
YouTube for user-generated text and image discussions.

AI Generated Analysis | Feedback

Social Media Platform: Provides a digital platform for users to create, share, and discuss content within communities, fostering engagement and information exchange.
Advertising Services: Offers digital advertising solutions for businesses to display ads and reach Reddit's global user base across its platform.
Premium Subscription (Reddit Premium): A subscription service that provides users with an ad-free browsing experience and exclusive features for a recurring fee.
Data Licensing: Licenses its vast repository of public user-generated content and conversations to third parties, primarily for purposes like training artificial intelligence models.

AI Generated Analysis | Feedback

Reddit (symbol: RDDT) primarily generates revenue and serves other companies through its advertising platform and data licensing agreements.

Major Customer Companies:

Alphabet Inc. (symbols: GOOGL, GOOG): A significant customer through a multi-year data licensing agreement, where Alphabet (Google) can access Reddit's content for training its artificial intelligence models and improving its products.
Advertisers (various industries): While Reddit does not typically disclose the names of its individual major advertising customers, advertising revenue is historically its largest income stream. These customers consist of a broad range of businesses from various industries (e.g., consumer goods, technology, entertainment, financial services, e-commerce) that pay Reddit to display ads to its user base. Due to the nature of programmatic advertising and the vast number of companies involved, specific major advertisers are not usually identified or disclosed by ad platforms.

Although a smaller portion of its overall revenue, Reddit also serves individual users directly through premium subscriptions, offering an ad-free experience and additional features.

AI Generated Analysis | Feedback

Amazon.com, Inc. (AMZN)

AI Generated Analysis | Feedback

Steve Huffman, Co-Founder and CEO

Steve Huffman is a co-founder of Reddit, which he launched in June 2005 with Alexis Ohanian. They sold Reddit to Condé Nast in October 2006 for an estimated $10 million to $20 million. After leaving Reddit in 2009, Huffman co-founded the airfare search engine Hipmunk in 2010, where he served as CTO. Hipmunk was acquired by Concur in 2016 and subsequently shut down in 2020. Huffman returned to Reddit as CEO in July 2015. He is also an angel investor with a portfolio that includes 10 companies.

Drew Vollero, Chief Financial Officer

Drew Vollero was appointed as Reddit's first Chief Financial Officer in March 2021. He played a key role in leading the company through its IPO process. Prior to joining Reddit, Vollero served as the first CFO of Snap, where he was responsible for scaling the finance, accounting, and audit functions and guided the company through its IPO. His experience also includes leadership roles in finance at Mattel and Pepsi. He was also CFO at Allied Universal, a privately held firm that was considering going public. This demonstrates a pattern of managing companies, including privately held ones, and taking them through the IPO process.

Jen Wong, Chief Operating Officer

Jen Wong has served as Reddit's Chief Operating Officer since April 2018. She oversees the company's business strategy and related teams. Her previous roles include Chief Operating Officer and President of Digital at Time, Inc., Chief Business Officer for PopSugar, and Global Head of Business Operations for AOL. She was a key figure in Reddit's 2024 IPO.

Chris Slowe, Chief Technology Officer

Chris Slowe is the Chief Technology Officer and a founding engineer of Reddit. He started with Reddit in May 2017 in his current tenure.

Ben Lee, Chief Legal Officer

Ben Lee is Reddit's Chief Legal Officer. He joined the company in 2019 and is responsible for leading Reddit's legal and policy teams.

AI Generated Analysis | Feedback

**Competition for community formation and engagement from real-time platforms like Discord:** While not new, Discord's continuous growth and evolution into a primary platform for diverse online communities, offering real-time chat, voice, and highly customizable private spaces, presents an emerging threat to Reddit's traditionally asynchronous, public forum model. As new communities and niche interest groups increasingly opt for Discord's more immediate and interactive environment, it directly competes with Reddit for user acquisition, content creation, and overall engagement, especially among younger demographics.
**Disintermediation by advanced AI models as primary information retrieval tools:** Reddit is a vast repository of user-generated knowledge, reviews, and troubleshooting discussions. The proliferation of powerful AI chatbots (e.g., ChatGPT, Google Gemini) capable of directly answering complex queries by synthesizing information (often sourced from Reddit itself) threatens to bypass Reddit as a direct destination for users seeking specific information or opinions. If users increasingly obtain answers directly from AI without visiting Reddit, it could lead to a significant reduction in direct traffic, user engagement, and consequently, advertising revenue, effectively making AI an intermediary between users and Reddit's content.

AI Generated Analysis | Feedback

Reddit's primary products and services include advertising and premium subscriptions, operating within the broader online community platform market. The addressable markets for these services are substantial:

Advertising

Reddit's main revenue stream is advertising, encompassing ad sales, sponsored posts, and promoted content. The addressable market for digital and social media advertising is global:

The global digital advertising market was estimated at $563.4 billion in 2021 and is forecast to reach $1,249.3 billion by 2027, growing at a compound annual growth rate (CAGR) of 14.7% between 2022 and 2027. Other estimates project the global digital advertising market to reach $1.1 trillion by 2030, with a CAGR of 11% from 2024.
The global social media advertising market size is expected to reach $262.62 billion by 2028, expanding at a CAGR of 12.4% from 2021 to 2028. More recent projections indicate the social media advertising market is projected to grow from $121.66 billion in 2024 to $302.41 billion by 2032. Another report shows the global social media advertising market size was $151 billion in 2024 and is projected to reach $516.17 billion by 2033, exhibiting a CAGR of 14.4%.

Premium Subscriptions

Reddit offers premium subscriptions (formerly Reddit Gold), which provide users with an ad-free experience and other exclusive features. While a specific global market size for social media premium subscriptions is not readily available, Reddit's own premium subscription revenue is estimated to be approximately $32.57 million.

Online Community Platforms

Reddit operates as a prominent online community platform. The broader market for online community platforms and management software reflects the ecosystem in which Reddit thrives:

The global online community platform market size was valued at approximately $1.2 billion in 2024 and is expected to reach $3 billion by 2033, with a CAGR of about 10.5% from 2025 to 2033. Other sources estimate the market size at $2.0 billion in 2024, projected to reach $6.0 billion by 2032 with a CAGR of 15%.
The global online community management software market was valued at $5.3 billion and is projected to reach $11.72 billion by the end of 2030, growing at a CAGR of 12% over the forecast period of 2024–2030.

AI Generated Analysis | Feedback

Reddit (RDDT) is poised for future revenue growth over the next 2-3 years, driven by several key initiatives and market trends:

Advertising Revenue Expansion

Reddit's primary revenue driver, advertising, is expected to continue its robust growth. The company is enhancing its advertising offerings through automation, higher Average Revenue Per User (ARPU), and the introduction of new, interactive ad formats. International expansion is also a significant factor, with Reddit leveraging machine translation and local partnerships to extend its reach into new global markets, including a planned expansion into 35 countries in 2025. Artificial intelligence (AI) is playing a crucial role in accelerating ad business growth by improving targeting and lower-funnel capabilities, leading to higher returns on ad spend (ROAS).
Data Licensing Deals

A significant and high-margin revenue stream for Reddit is the licensing of its vast corpus of user-generated content for training large language models (LLMs) and other AI applications. Reddit has already secured deals with major tech companies like Google and OpenAI for this purpose. The company's CEO has indicated ongoing discussions with numerous other potential partners, highlighting the substantial demand for Reddit's authentic and constantly updated human-generated data.
User Growth and Enhanced Monetization

Continued growth in Reddit's user base, particularly Daily Active Uniques (DAUq) and Weekly Active Uniques (WAUq), forms a foundational driver for increased revenue. The platform has seen consistent increases in user engagement, with a reported 19% year-over-year growth in DAUq in FQ3 2025. Furthermore, Reddit is focused on improving its Average Revenue Per User (ARPU), which saw a 41% increase in Q3 2025. Efforts include converting more "logged-out" users, who primarily access content through search engines, into more monetizable "logged-in" users by offering a better platform experience and using improved machine learning models for shopping promotions.
Launch of New Products and Services

Reddit is actively developing and rolling out new products and services designed to create additional revenue streams and boost user engagement. One such initiative is "Reddit Answers," an AI-powered summary feature that has already gained traction with over a million weekly users as of Q1 2025. This feature aims to provide new reasons for users to visit the site and presents new monetization opportunities. Additionally, plans for "paid subreddits" are in the pipeline, which could attract more content creators and introduce another direct revenue stream for the company.

AI Generated Analysis | Feedback

Here is a summary of Reddit's capital allocation decisions over the last 3-5 years:

Share Repurchases

Reddit has not made any significant share repurchases as a public company since its IPO in March 2024.

Share Issuance

In March 2024, Reddit completed its Initial Public Offering (IPO), offering 25.3 million shares of Class A Common Stock at a price of $34.00 per share.
The company directly sold 18,576,527 shares, generating gross proceeds of approximately $631.6 million before deductions.

Inbound Investments

Reddit raised $410 million in a Series F funding round in August 2021 from Fidelity Investments, achieving a valuation of about $10 billion.
In February 2021, the company completed a Series E funding round, securing $367.95 million at a post-money valuation of $5.89 billion, with Vy Capital as the lead investor.
Overall, Reddit has raised a total of $1.62 billion through seven funding rounds.

Outbound Investments

Reddit made its first acquisition since its IPO in August 2024, acquiring Memorable AI, an ad-optimization company.
Between 2020 and 2022, Reddit completed several other acquisitions, including Dubsmash (December 2020), Spell (June 2022), MeaningCloud (July 2022), and Spiketrap (September 2022).

Capital Expenditures

Reddit's capital expenditures were notably low at $1.0 million in the first quarter of 2025, reflecting a capital-light business model.
Management is noted for running the company efficiently and with low capital expenditure, often around 2% of its revenue.

Better Bets than Reddit (RDDT)

	RDDT	Better Performance than RDDT
Metric	Value	INDUSTRY: Interactive Media & Services
Rev Chg LTM	69.7%	GITS (99.9%), ONFO (78.4%)
Rev Chg 3Y Avg	45.3%	GIFT (1116.8%), RUM (162.0%), ONFO (94.9%)
Op Mgn LTM	13.8%	META (43.2%), GOOGL (32.2%), MTCH (24.0%), CARG (22.5%), GTM (16.3%)
CFO/Rev LTM	27.0%	META (56.8%), GOOGL (39.3%), CARG (31.1%), MTCH (29.2%), PINS (28.3%)
FCF/Rev LTM	26.8%	GTM (28.0%), MTCH (27.7%), PINS (27.7%), CARG (27.2%)
Total Yield	0.8%	PINS (9.1%), MTCH (8.3%), GOOGL (4.6%), META (3.5%), SPOT (1.0%)
P/S	22.7	PINS (5.4), Z (7.5), GOOGL (7.6), SPOT (8.5), META (9.8)
P/Op Inc	164.4	MTCH (10.2), META (22.6), GOOGL (23.7), SPOT (72.8), PINS (77.8)

	RDDT	Better Performance than RDDT
Metric	Value	SECTOR: Communication Services
Rev Chg LTM	69.7%	MDIA (165.8%), LBRDA (108.2%), GOGO (102.0%), AD (91.1%), GMGI (72.2%)
Rev Chg 3Y Avg	45.3%	RUM (162.0%), EVC (150.3%), GMGI (87.1%), ATEX (75.4%), MDIA (62.1%)
Op Mgn LTM	13.8%	META (43.2%), GOOGL (32.2%), NFLX (29.1%), TMUS (22.6%), DIS (14.8%)
CFO/Rev LTM	27.0%	META (56.8%), GOOGL (39.3%), T (32.8%), TMUS (31.3%), VZ (28.0%)
FCF/Rev LTM	26.8%	GSAT (108.0%), TKO (37.0%), MTCH (27.7%), PINS (27.7%), CARG (27.2%)
Total Yield	0.8%	T (11.0%), TMUS (5.9%), DIS (5.5%), GOOGL (4.6%), META (3.5%)
P/S	22.7	T (1.6), DIS (2.4), TMUS (3.1), GOOGL (7.6), META (9.8)
P/Op Inc	164.4	T (8.3), TMUS (13.9), DIS (16.0), META (22.6), GOOGL (23.7)

	RDDT	Better Performance than RDDT
Metric	Value	ALL OTHER SECTORS
Rev Chg LTM	69.7%	CRDO (175.8%), EXE (169.1%), APP (86.4%), HOOD (74.6%), NVDA (71.6%)
Rev Chg 3Y Avg	45.3%	APO (129.8%), NVDA (92.0%), NU (70.1%), ALNY (51.4%), HOOD (47.5%)
Op Mgn LTM	13.8%	NVDA (58.1%), MSFT (46.3%), LLY (43.0%), AVGO (39.0%), AAPL (31.9%)
CFO/Rev LTM	27.0%	MA (56.1%), MSFT (50.0%), NVDA (46.6%), AVGO (42.4%), ORCL (36.5%)
FCF/Rev LTM	26.8%	V (53.9%), MA (52.5%), PLTR (46.0%), NVDA (43.6%), AVGO (41.6%)
Total Yield	0.8%	MSFT (3.4%), AMZN (3.0%), AAPL (3.0%), NVDA (2.3%), AVGO (1.5%)
P/S	22.7	AMZN (3.5), AAPL (9.3), MSFT (13.1), TSLA (15.0), AVGO (21.7)
P/Op Inc	164.4	MSFT (28.3), AAPL (29.1), AMZN (30.7), NVDA (40.1), AVGO (55.6)

		Best Bets In Communication Services Sector
	RDDT	IPG
What You Pay
P/E	123.9	20.4
P/EBIT	164.4	9.7
What You Get
Rev Chg Q	67.9%	-6.4%
Rev Chg LTM	69.7%	-5.2%
Rev Chg 3Y Avg	45.3%	-1.3%
FCF/Rev 3Y Avg	7.6%	7.4%

[1] Choosing top 10 best bets from each sector quarterly is an alpha producing strategy vs sector benchmark
[2] Historical annualized return of 12%, alpha of 0.5%, and sharpe of 0.56

Latest Trefis Analyses

	Title	Topic	Date
0	DASHBOARDS
1	Is Reddit Stock Built to Withstand a Pullback?	Return
2	Why Reddit Stock Moved: RDDT Stock Has Gained 35% Since 2024 Fiscal End, Primarily Due To Favorable Change In Revenues
3	RDDT Dip Buy Analysis
4	Reddit (RDDT) Valuation Ratios Comparison	Financials
5	Reddit (RDDT) Operating Cash Flow Comparison	Financials
6	Reddit (RDDT) Net Income Comparison	Financials
7	Reddit (RDDT) Operating Income Comparison	Financials
8	Reddit (RDDT) Revenue Comparison	Financials
9	ARTICLES
10	Why Reddit Stock Dropped?		September 26th, 2025
11	RDDT Jumps 18% In A Month, Things To Be Wary Of When Buying The Stock		September 23rd, 2025
12	Large Cap Stocks Trading At 52-Week High		September 19th, 2025
13	RDDT Leaps 40% In One Month, Should You Buy The Stock Despite Its High Valuation?		August 30th, 2025
14	Large Cap Stocks Trading At 52-Week High		August 16th, 2025

	Title
0	DASHBOARDS
1	Is Reddit Stock Built to Withstand a Pullback?
2	Why Reddit Stock Moved: RDDT Stock Has Gained 35% Since 2024 Fiscal End, Primarily Due To Favorable Change In Revenues
3	RDDT Dip Buy Analysis
4	Reddit (RDDT) Valuation Ratios Comparison
5	Reddit (RDDT) Operating Cash Flow Comparison
6	Reddit (RDDT) Net Income Comparison
7	Reddit (RDDT) Operating Income Comparison
8	Reddit (RDDT) Revenue Comparison
9	ARTICLES
10	Why Reddit Stock Dropped?
11	RDDT Jumps 18% In A Month, Things To Be Wary Of When Buying The Stock
12	Large Cap Stocks Trading At 52-Week High
13	RDDT Leaps 40% In One Month, Should You Buy The Stock Despite Its High Valuation?
14	Large Cap Stocks Trading At 52-Week High

Trade Ideas

Select past ideas related to RDDT. For more, see Trefis Trade Ideas.

Unique Key	Date	Ticker	Company	Category	Trade Strategy	6M Fwd Rtn	12M Fwd Rtn	12M Max DD
PINS_11302025_Monopoly_xInd_xCD_Getting_Cheaper	11302025	PINS	Pinterest	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	2.9%	2.9%	0.0%
TMUS_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	TMUS	T-Mobile US	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	0.8%	0.8%	-1.2%
Z_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	Z	Zillow	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	1.3%	1.3%	0.0%
IRDM_11072025_Dip_Buyer_High_CFO_Margins_ExInd_DE	11072025	IRDM	Iridium Communications	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	-0.5%	-0.5%	-5.6%
TTD_10032025_Dip_Buyer_High_CFO_Margins_ExInd_DE	10032025	TTD	Trade Desk	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	-22.5%	-22.5%	-25.6%

Unique Key	Date	Ticker	Company	Category	Trade Strategy	6M Fwd Rtn	12M Fwd Rtn	12M Max DD
PINS_11302025_Monopoly_xInd_xCD_Getting_Cheaper	11302025	PINS	Pinterest	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	2.9%	2.9%	0.0%
TMUS_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	TMUS	T-Mobile US	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	0.8%	0.8%	-1.2%
Z_11212025_Monopoly_xInd_xCD_Getting_Cheaper	11212025	Z	Zillow	Monopoly	MY \| Getting CheaperMonopoly-Like with P/S Decline Large cap with monopoly-like margins or cash flow generation and getting cheaper based on P/S multiple	1.3%	1.3%	0.0%
IRDM_11072025_Dip_Buyer_High_CFO_Margins_ExInd_DE	11072025	IRDM	Iridium Communications	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	-0.5%	-0.5%	-5.6%
TTD_10032025_Dip_Buyer_High_CFO_Margins_ExInd_DE	10032025	TTD	Trade Desk	Dip Buy	DB \| CFO/Rev \| Low D/EDip Buy with High Cash Flow Margins Buying dips for companies with significant cash flows from operations and reasonable debt / market cap	-22.5%	-22.5%	-25.6%

Recent Active Movers

1 Day Top Gainers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
MPLT	MapLight Therapeutics	0.7	31.3%
AEVA	Aeva Technologies	0.8	25.7%	188.2%
DC	Dakota Gold	0.6	19.7%	150.9%
SERV	Serve Robotics	0.7	18.2%	-12.6%
ACDC	ProFrac	0.7	17.6%	-45.0%
HY	Hyster Yale	0.6	15.6%	-29.9%
AEO	American Eagle Outfitters	4.1	15.1%	49.7%
BEAM	Beam Therapeutics	2.7	14.4%	7.8%
GOSS	Gossamer Bio	0.8	14.4%	278.1%
FTRE	Fortrea	1.3	14.4%	-21.8%

1 Day Top Losers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
PSTG	Pure Storage	22.6	-27.3%	12.1%
GTLB	GitLab	6.3	-12.8%	-32.9%
CTEV	Claritev	0.7	-11.3%
FBYD	Falcons Beyond Global	0.7	-11.2%	131.2%
ACHC	Acadia Healthcare	1.3	-10.9%	-63.0%
ULS	UL Solutions	16.0	-10.7%	60.4%
HPK	HighPeak Energy	0.7	-10.6%	-59.8%
OS	OneStream	3.5	-10.4%	-35.0%
ARE	Alexandria Real Estate Equities	8.2	-10.1%	-47.9%
THO	Thor Industries	5.3	-9.5%	6.6%

1 Week Top Gainers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
HPP	Hudson Pacific Properties	6.3	641.5%	-34.3%
TLRY	Tilray Brands	7.5	618.1%	-46.9%
TMC	TMC The Metals	2.8	42.2%	589.3%
VERA	Vera Therapeutics	2.6	40.2%	-2.4%
ARWR	Arrowhead Pharmaceuticals	9.0	39.1%	246.1%
TE	T1 Energy	0.7	37.4%
MPLT	MapLight Therapeutics	0.7	32.1%
AEVA	Aeva Technologies	0.8	31.1%	188.2%
AMKR	Amkor Technology	10.9	30.2%	73.4%
DC	Dakota Gold	0.6	30.2%	150.9%

1 Week Top Losers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
JANX	Janux Therapeutics	1.1	-50.7%	-68.0%
VTYX	Ventyx Biosciences	0.6	-25.0%	258.0%
CTEV	Claritev	0.7	-23.5%
AMBA	Ambarella	3.0	-22.9%	-3.6%
FULC	Fulcrum Therapeutics	0.6	-21.5%	92.8%
PD	PagerDuty	1.1	-20.5%	-33.9%
NTNX	Nutanix	12.7	-19.3%	-22.4%
CNK	Cinemark	2.6	-18.0%	-25.2%
PSTG	Pure Storage	22.6	-17.2%	12.1%
ZS	Zscaler	38.1	-15.9%	35.1%

1 Month Top Gainers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
OLMA	Olema Pharmaceuticals	2.3	223.6%	367.4%
COGT	Cogent Biosciences	5.4	152.6%	402.1%
CDTX	Cidara Therapeutics	5.9	115.1%	722.1%
IRWD	Ironwood Pharmaceuticals	0.6	100.5%	-15.8%
TERN	Terns Pharmaceuticals	2.5	95.9%	396.2%
FRGE	Forge Global	0.6	90.3%	217.8%
SGML	Sigma Lithium	1.1	87.3%	-10.6%
INSP	Inspire Medical Systems	4.0	82.8%	-27.3%
NPCE	NeuroPace	0.6	77.2%	48.9%
ALMS	Alumis	0.6	71.9%	-0.3%

1 Month Top Losers

Ticker	Company	Mkt Cap (B)	1M Rtn	YTD Rtn
UP	Wheels Up Experience	0.4	-52.7%	-62.4%
CCOI	Cogent Communications	0.9	-51.9%	-72.9%
SMR	NuScale Power	3.0	-50.7%	12.3%
FRMI	Fermi	10.3	-47.5%
AMSC	American Superconductor	1.4	-47.2%	30.1%
TLRY	Tilray Brands	7.5	-46.1%	-46.9%
BTDR	Bitdeer Technologies	2.4	-44.8%	-41.8%
EXOD	Exodus Movement	0.4	-43.1%	-53.3%
STUB	Stubhub	3.5	-39.8%
METC	Ramaco Resources	1.0	-39.4%	66.9%

Recent Active Movers

1 Day Top Gainers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
MPLT	MapLight Therapeutics	0.7	31.3%
AEVA	Aeva Technologies	0.8	25.7%	188.2%
DC	Dakota Gold	0.6	19.7%	150.9%
SERV	Serve Robotics	0.7	18.2%	-12.6%
ACDC	ProFrac	0.7	17.6%	-45.0%
HY	Hyster Yale	0.6	15.6%	-29.9%
AEO	American Eagle Outfitters	4.1	15.1%	49.7%
BEAM	Beam Therapeutics	2.7	14.4%	7.8%
GOSS	Gossamer Bio	0.8	14.4%	278.1%
FTRE	Fortrea	1.3	14.4%	-21.8%

1 Day Top Losers

Ticker	Company	Mkt Cap (B)	1D Rtn	YTD Rtn
PSTG	Pure Storage	22.6	-27.3%	12.1%
GTLB	GitLab	6.3	-12.8%	-32.9%
CTEV	Claritev	0.7	-11.3%
FBYD	Falcons Beyond Global	0.7	-11.2%	131.2%
ACHC	Acadia Healthcare	1.3	-10.9%	-63.0%
ULS	UL Solutions	16.0	-10.7%	60.4%
HPK	HighPeak Energy	0.7	-10.6%	-59.8%
OS	OneStream	3.5	-10.4%	-35.0%
ARE	Alexandria Real Estate Equities	8.2	-10.1%	-47.9%
THO	Thor Industries	5.3	-9.5%	6.6%

1 Week Top Gainers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
HPP	Hudson Pacific Properties	6.3	641.5%	-34.3%
TLRY	Tilray Brands	7.5	618.1%	-46.9%
TMC	TMC The Metals	2.8	42.2%	589.3%
VERA	Vera Therapeutics	2.6	40.2%	-2.4%
ARWR	Arrowhead Pharmaceuticals	9.0	39.1%	246.1%
TE	T1 Energy	0.7	37.4%
MPLT	MapLight Therapeutics	0.7	32.1%
AEVA	Aeva Technologies	0.8	31.1%	188.2%
AMKR	Amkor Technology	10.9	30.2%	73.4%
DC	Dakota Gold	0.6	30.2%	150.9%

1 Week Top Losers

Ticker	Company	Mkt Cap (B)	1W Rtn	YTD Rtn
JANX	Janux Therapeutics	1.1	-50.7%	-68.0%
VTYX	Ventyx Biosciences	0.6	-25.0%	258.0%
CTEV	Claritev	0.7	-23.5%
AMBA	Ambarella	3.0	-22.9%	-3.6%
FULC	Fulcrum Therapeutics	0.6	-21.5%	92.8%
PD	PagerDuty	1.1	-20.5%	-33.9%
NTNX	Nutanix	12.7	-19.3%	-22.4%
CNK	Cinemark	2.6	-18.0%	-25.2%
PSTG	Pure Storage	22.6	-17.2%	12.1%
ZS	Zscaler	38.1	-15.9%	35.1%

Peer Comparisons for Reddit

Peers to compare with:

Financials

	RDDT	Z	ZIP	STUB	WSHP	GOOGL	Median
Name	Reddit	Zillow	ZipRecru.	Stubhub	WeShop	Alphabet
Mkt Price	220.84	76.01	5.40	10.78	145.00	319.63	110.50
Mkt Cap	41.5	18.4	0.5	-	-	3,863.0	30.0
Rev LTM	1,905	2,483	448	-	-	385,477	2,194
Op Inc LTM	263	-90	-27	-	-	124,077	118
FCF LTM	510	149	8	-	-	73,552	329
FCF 3Y Avg	171	187	56	-	-	68,998	179
CFO LTM	514	418	16	-	-	151,424	466
CFO 3Y Avg	178	387	66	-	-	120,990	283

Growth & Margins

	RDDT	Z	ZIP	STUB	WSHP	GOOGL	Median
Name	Reddit	Zillow	ZipRecru.	Stubhub	WeShop	Alphabet
Rev Chg LTM	69.7%	15.2%	-10.1%	-	-	13.4%	14.3%
Rev Chg 3Y Avg	45.3%	7.0%	-20.7%	-	-	11.0%	9.0%
Rev Chg Q	67.9%	16.4%	-1.8%	-	-	15.9%	16.2%
QoQ Delta Rev Chg LTM	14.2%	4.0%	-0.5%	-	-	3.8%	3.9%
Op Mgn LTM	13.8%	-3.6%	-6.1%	-	-	32.2%	5.1%
Op Mgn 3Y Avg	-21.2%	-8.5%	3.6%	-	-	29.9%	-2.5%
QoQ Delta Op Mgn LTM	5.9%	1.9%	-0.4%	-	-	-0.5%	0.8%
CFO/Rev LTM	27.0%	16.8%	3.5%	-	-	39.3%	21.9%
CFO/Rev 3Y Avg	8.3%	17.8%	10.9%	-	-	35.3%	14.4%
FCF/Rev LTM	26.8%	6.0%	1.8%	-	-	19.1%	12.5%
FCF/Rev 3Y Avg	7.6%	8.8%	9.2%	-	-	20.5%	9.0%

Valuation

	RDDT	Z	ZIP	STUB	WSHP	GOOGL	Median
Name	Reddit	Zillow	ZipRecru.	Stubhub	WeShop	Alphabet
Mkt Cap	41.5	18.4	0.5	-	-	3,863.0	30.0
P/S	22.7	7.5	0.8	-	-	7.6	7.6
P/EBIT	164.4	-2,333.9	-46.1	-	-	19.3	-13.4
P/E	123.9	-583.5	-8.5	-	-	23.6	7.6
P/CFO	84.1	44.7	23.1	-	-	19.4	33.9
Total Yield	0.8%	-0.2%	-11.8%	-	-	4.6%	0.3%
Dividend Yield	0.0%	0.0%	0.0%	-	-	0.3%	0.0%
FCF Yield 3Y Avg	-	1.4%	5.6%	-	-	3.3%	3.3%
D/E	0.0	0.0	1.5	-	-	0.0	0.0
Net D/E	-0.1	-0.1	0.4	-	-	-0.0	-0.0

Returns

	RDDT	Z	ZIP	STUB	WSHP	GOOGL	Median
Name	Reddit	Zillow	ZipRecru.	Stubhub	WeShop	Alphabet
1M Rtn	7.7%	1.8%	29.8%	-39.8%	-	12.7%	7.7%
3M Rtn	-1.0%	-9.0%	4.9%	-	-	38.7%	1.9%
6M Rtn	86.8%	8.3%	-16.3%	-	-	90.6%	47.5%
12M Rtn	47.4%	-9.5%	-36.2%	-	-	87.4%	19.0%
3Y Rtn	-	96.5%	-67.2%	-	-	220.4%	96.5%
1M Excs Rtn	7.8%	1.8%	29.8%	-39.8%	-	12.7%	7.8%
3M Excs Rtn	-10.2%	-14.5%	-1.1%	-	-	32.4%	-5.7%
6M Excs Rtn	72.1%	-6.5%	-31.0%	-	-	75.9%	32.8%
12M Excs Rtn	43.4%	-23.8%	-52.6%	-	-	76.5%	9.8%
3Y Excs Rtn	-	42.6%	-141.4%	-	-	162.3%	42.6%

Financials

Annual
Quarterly

$ Mil \| FY: 12/31	LTM	2024	2023	2022	2021	2020
Period End	9/30/2025	12/31/2024	12/31/2023	12/31/2022	12/31/2021	12/31/2020
Filing Date	10/31/2025	2/13/2025	3/21/2024	11/9/2023	11/16/2022	11/16/2022
Key Financials
Total Revenue	1,905	1,300	804	667	485	229
EBITDA	279	-545	-126	-164	-124	-61
Operating Income	263	-561	-140	-172	-127	-63
Net Income	349	-484	-91	-159	-128	-59
EPS	1.89	-3.33	-0.57	-1.07	-0.87	-0.40
Growth Rates
Total Revenue Growth	69.7%	61.7%	20.6%	37.5%	111.8%	-
EBITDA Growth	146.9%	-330.9%	23.0%	-32.0%	-105.2%	-
Operating Income Growth	143.1%	-299.9%	18.6%	-35.3%	-103.4%	-
Net Income Growth	165.0%	-433.2%	42.7%	-24.0%	-116.1%	-
Margins
EBITDA Margin	14.6%	-41.9%	-15.7%	-24.6%	-25.7%	-26.5%
Operating Income Margin	13.8%	-43.1%	-17.4%	-25.8%	-26.2%	-27.3%
Net Income Margin	18.3%	-37.2%	-11.3%	-23.8%	-26.4%	-25.9%
Cash & Debt
Total Cash	2,226	1,841	1,213	1,267	1,413	363
Total Debt	25	27	26	19	13	20
Net Debt / (Cash)	-2,201	-1,814	-1,187	-1,247	-1,400	-343
Cash Flows
Net Cash from Operations	514	222	-75	-94	-130	-62
Free Cash from Operations	510	216	-85	-100	-137	-65
Returns to Shareholders
Dividends	0	-0	-0	-0	-0	-0
Share Repurchases	-0	-0	-0	-0	95	-0

$ Mil \| FY: 12/31	2025Q3	2025Q2	2025Q1	2024Q4	2024Q3	2024Q2	2024Q1	2023Q4	2023Q3	2023Q2	2023Q1	2022Q4
Period End	9/30/2025	6/30/2025	3/31/2025	12/31/2024	9/30/2024	6/30/2024	3/31/2024	12/31/2023	9/30/2023	6/30/2023	3/31/2023	12/31/2022
Filing Date	10/31/2025	8/1/2025	5/2/2025	2/13/2025	10/30/2024	8/7/2024	5/8/2024	3/21/2024	11/9/2023	8/7/2024	5/8/2024	11/9/2023
Key Financials Quarterly
Total Revenue	585	500	392	428	348	281	243	250	208	183	164	200
Ebitda	142	72	8	57	11	-27	-586	7	-16	-50	-67	-26
Operating Income	139	68	4	53	7	-31	-589	3	-20	-53	-71	-30
Net Income	163	89	26	71	30	-10	-575	19	-7	-41	-61	-22
EPS	0.87	0.48	0.14	0.40	0.18	-0.06	-8.19	0.12	-0.05	-0.28	-0.41	-0.15
Key Financials TTM
Total Revenue TTM	1,905	1,668	1,450	1,300	1,122	981	883	804	755	719	684	667
Ebitda TTM	279	147	48	-545	-595	-622	-645	-126	-160	-191	-197	-164
Operating Income TTM	263	131	33	-561	-610	-637	-659	-140	-173	-204	-208	-172
Net Income TTM	349	216	117	-484	-537	-574	-605	-91	-132	-170	-184	-159
Growth Rates Quarterly
Total Revenue Growth	67.9%	77.7%	61.5%	71.3%	67.9%	53.6%	48.4%	24.6%	21.0%	23.2%	12.0%	13.4%
EBITDA Growth	1216.1%	362.7%	101.3%	742.4%	166.4%	45.1%	-770.5%	125.7%	66.2%	10.2%	-95.8%	-427.7%
Operating Income Growth	1921.3%	318.1%	100.7%	1653.6%	135.0%	41.4%	-734.6%	110.2%	61.6%	5.9%	-100.6%	-513.0%
Net Income Growth	444.9%	984.2%	104.5%	283.3%	504.3%	75.4%	-844.8%	183.4%	83.7%	26.2%	-72.5%	-434.5%
Margins Quarterly
EBITDA Margin	24.4%	14.3%	2.0%	13.3%	3.1%	-9.7%	-241.0%	2.7%	-7.9%	-27.1%	-41.1%	-13.1%
Operating Income Margin	23.7%	13.6%	1.0%	12.4%	2.0%	-11.0%	-242.5%	1.2%	-9.4%	-29.0%	-43.1%	-14.8%
Net Income Margin	27.8%	17.9%	6.7%	16.6%	8.6%	-3.6%	-236.7%	7.4%	-3.6%	-22.5%	-37.2%	-11.1%
Cash & Debt
Total Cash	2,226	2,060	1,951	1,841	1,745	1,699	1,670	1,213	1,221	-	-	1,267
Total Debt	25	25	27	27	27	28	25	26	26	0	0	19
Net Debt / (Cash)	-2,201	-2,035	-1,925	-1,814	-1,718	-1,671	-1,645	-1,187	-1,195	-	-	-1,247
Cash Flows Quarterly
FCF from Operations	185	111	128	90	72	28	32	-17	-8	-54	4	-36
Cash Flows TTM
FCF from Operations TTM	514	401	318	222	115	35	-47	-75	-93	-119	-95	-94
Returns to Shareholders Quarterly
Dividends	0	0	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0	-0
Return on Invested Capital (ROIC) Quarterly
ROIC	41.6%	18.8%	1.1%	13.9%	1.8%	-8.0%	-158.7%	-	-	-	-	-
Return on Invested Capital (ROIC) TTM
ROIC TTM	19.7%	9.1%	2.2%	-36.9%	-39.9%	-41.8%	-44.4%	-	-	-	-	-

Price Behavior

Price Behavior

Market Price	$220.84
Market Cap ($ Bil)	41.5
First Trading Date	03/21/2024
Distance from 52W High	-18.4%
	50 Days	200 Days
DMA Price	$205.41	$150.93
DMA Trend	indeterminate	down
Distance from DMA	7.5%	46.3%
	3M	1YR
Volatility	70.4%	79.3%
Downside Capture	291.75	181.82
Upside Capture	206.87	197.37
Correlation (SPY)	54.3%	54.1%

RDDT Betas & Captures as of 11/30/2025

	1M	2M	3M	6M	1Y	3Y
Beta	4.07	3.20	3.21	2.06	2.18	-0.18
Up Beta	2.97	3.98	3.90	3.24	2.24	0.50
Down Beta	5.07	3.89	3.79	1.96	2.40	0.82
Up Capture	573%	242%	249%	308%	407%	220%
Bmk +ve Days	13	26	39	74	142	427
Stock +ve Days	11	21	32	66	128	214
Down Capture	342%	271%	273%	109%	139%	98%
Bmk -ve Days	7	16	24	52	107	323
Stock -ve Days	9	21	31	59	120	209

[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively

1Y 5Y 10Y

Based On 1-Year Data

null

Based On 5-Year Data

null

Based On 10-Year Data

null

Short Interest

Short Interest: As Of Date	11142025
Short Interest: Shares Quantity	18,016,386
Short Interest: % Change Since 10312025	4.4%
Average Daily Volume	5,402,633
Days-to-Cover Short Interest	3.33
Basic Shares Quantity	188,041,632
Short % of Basic Shares	9.6%

Returns Analyses

	Title
0	Is Reddit Stock Built to Withstand a Pullback?

SEC Filings

Expand for More

Report Date	Filing Date	Filing
9302025	10312025	10-Q 9/30/2025
6302025	8012025	10-Q 6/30/2025
3312025	5022025	10-Q 3/31/2025
12312024	2132025	10-K 12/31/2024
9302024	10302024	10-Q 9/30/2024
6302024	8072024	10-Q 6/30/2024
3312024	5082024	10-Q 3/31/2024
12312023	3212024	424B4 12/31/2023
12312022	11092023	DRS/A 12/31/2022
6302022	8192022	DRS/A 6/30/2022
3312022	5132022	DRS/A 3/31/2022
12312021	11162022	DRS/A 12/31/2021
9302021	1282022	DRS/A 9/30/2021

External Quote Links

0	Y Finance	Barrons
1	TradingView	Morningstar
2	SeekingAlpha	ValueLine
3	Motley Fool	Robinhood
4	CNBC	Etrade
5	MarketWatch	Unusual Whales
6	YCharts	Perplexity Finance
7	FinViz

Prefer one of these to Trefis? Tell us why.

Reddit (RDDT)

Market Price (12/4/2025): $219.74 | Market Cap: $41.3 BilSector: Communication Services | Industry: Interactive Media & Services

Reddit (RDDT)

Market Price (12/4/2025): $219.74Market Cap: $41.3 BilSector: Communication ServicesIndustry: Interactive Media & Services

Valuation, Metrics & Events

RDDT Stock

Why The Stock Moved

Qualitative Assessment

Stock Movement Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Fundamental Drivers

Market Drivers

Return vs. Risk

Price Returns Compared

How Low Can It Go

In The Past

Preserve Wealth

Asset Allocation

About Reddit (RDDT)

Major Customer Companies:

Advertising

Premium Subscriptions

Online Community Platforms

Advertising Revenue Expansion

Data Licensing Deals

User Growth and Enhanced Monetization

Launch of New Products and Services

Share Repurchases

Share Issuance

Inbound Investments

Outbound Investments

Capital Expenditures

Interactive Breakdown

Better Bets than Reddit (RDDT)

Latest Trefis Analyses

Trade Ideas

Recent Active Movers

1 Day Top Gainers

1 Day Top Losers

1 Week Top Gainers

1 Week Top Losers

1 Month Top Gainers

1 Month Top Losers

Recent Active Movers

1 Day Top Gainers

1 Day Top Losers

1 Week Top Gainers

1 Week Top Losers

More From Trefis

Research & Analysis

Invest in Strategies

Wealth Management

Peer Comparisons for Reddit

Financials

Growth & Margins

Valuation

Returns

Comparison Analyses

FDIC Bank Data

Bank Capital

Bank Deposits

Bank Assets

Bank Loans

Financials

Segment Financials

Price Behavior

Based On 1-Year Data

Based On 5-Year Data

Based On 10-Year Data

Short Interest

Returns Analyses

Earnings Returns History

SEC Filings

Insider Activity

Industry Resources

Market Price (12/4/2025): $219.74 | Market Cap: $41.3 Bil
Sector: Communication Services | Industry: Interactive Media & Services

Market Price (12/4/2025): $219.74
Market Cap: $41.3 Bil
Sector: Communication Services
Industry: Interactive Media & Services