Back to rankings

Reddit Inc (RDDT)

Fair Value
Communication ServicesInternet Content & InformationUnited States

Fundamental

75

Price

$145.68

Market Cap

$27.53B

Part 1 · What the company is worth

Overview

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. Reddit, Inc. was founded in 2005 and is headquartered in San Francisco, California.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$2.78B

Trailing 12 months (through 6/30/2026)

Net Income

$871M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$684M

Total Equity

$2.93B

Total Liabilities

$310M

Current Ratio

10.49

Interest Coverage

-

Debt/EBITDA

0.05

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$171.62

Current Price

$145.68

Margin of Safety

+15.1%

Fair Value Range

$115.73 - $227.50

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$213.71
Discounted cash flow (DCF):Not enough data to compute it
Earnings multiple (P/E):$116.54
Graham growth formula:$71.31
Earnings power value (EPV):$19.45
Justified P/B:$30.64
Dividend discount (Gordon):Not enough data to compute it
P/FFO, funds from operations:Not enough data to compute it
Mid-cycle earnings:Not enough data to compute it
Revenue multiple:$28.26
Analyst Consensus:Buy (26B / 11H / 1S)
Last Earnings Surprise:+28.87%

Valuation Metrics

P/E Ratio

33.13

ROE

18.1%

P/B Ratio

6.33

P/FCF

20.43

Gross Margin

91.4%

ROIC

18.8%

Profitability Radar

Value Creation (Economic Moat)

ROIC

18.8%

WACC

15.8%

ROIC − WACC

+3.0 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (19)

  • EPS shows upward trend
  • ROIC 18.8%
  • Gross Margin 91.4%
  • P/FCF 20.43
  • Debt/Equity ratio
  • Operating Margin 28.2%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 29.0%
  • Revenue Growth 5Y 57.3%
  • Analyst Consensus 68% Buy
  • Earnings Surprise avg 45.9%
  • Earnings Quality (OCF/NI) 1.18
  • Net Margin Trend 31.3% vs 13.0%
  • Piotroski F-Score 6/9

Failed (5)

  • Price CAGR -1.75%
  • P/B Ratio 6.33
  • Price below Graham Number
  • DCF valuation (Unknown)
  • Share Dilution 39.0%

Unavailable (3)

  • Dividend Payout NaN%
  • Interest Coverage
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

6/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.18

High quality: earnings backed by cash

Share Dilution

39.0%

Issuing new shares, diluting ownership

Institutional Holdings

Governance

Executive Team

NameTitleAge
Mr. Steven Ladd HuffmanCo-Founder, CEO, President & Director40
Mr. Andrew VolleroChief Financial Officer58
Ms. Jennifer L. WongChief Operating Officer49
Mr. Benjamin Lee J.D.Chief Legal Officer & Corporate Secretary57
Ms. Michelle ReynoldsChief Accounting Officer42
Mr. Amit PuntambekarChief Technology Officer-
Jesse RoseHead of Investor Relations-
Mr. Adam CollinsChief Communications Officer-
Mr. Jim SquiresChief Marketing Officer-
Ms. Nellie PeshkovChief People Officer-

Audit Risk

7

Board Risk

9

Compensation Risk

9

Shareholder Rights Risk

10

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-06

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-31

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-08-12

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for RDDT, sourced from Markets Gazette.

  • 2d agoNEGATIVE
    Figura testa e spalle su Reddit indica discesa a $100 con venti contrari in aumento

    Reddit Inc. shares have experienced a significant downturn, falling from a July high of $207 to the current $143, representing a 50% drop from last year's peak. The market capitalization has shrunk from over $51 billion to $27.5 billion. This decline is attributed to increasing headwinds, including a decrease in website traffic by 3.22% to 4.18 billion visitors, partly due to search functionality issues. Technical analysis suggests a 'head and shoulders' pattern, indicating a potential further drop to $100. Investors are concerned about the company's growth trajectory.

  • 21d agoPOSITIVE
    Azioni Reddit +6%: crescita utenti di agosto al massimo del 2026

    Reddit Inc. shares surged over 6% on Thursday, reversing a four-day losing streak. This rally follows data from Piper Sandler indicating a significant acceleration in user growth for August. The brokerage reported an 8% month-over-month increase in average Reddit users, the largest monthly jump this year, recovering from a 2% decline in July. The growth in Reddit's Feed audience more than offset a dip in its Conversation users. Overall audience growth accelerated to 18% year-over-year in August, a positive sign for advertiser engagement and platform expansion.

  • 8/14/2026POSITIVE
    Inserimento nell'S&P 500 spinge Reddit, ma restano i problemi di referral da Google

    Reddit Inc. shares surged nearly 13% in after-hours trading following the announcement that the social media platform will be added to the S&P 500 index, effective August 18th. Reddit will replace AvalonBay Communities, which is being acquired by Equity Residential. This inclusion is a significant milestone for Reddit, occurring less than two years after its public debut. The anticipated increase in demand from passive funds and ETFs that track the S&P 500 is driving the stock rally, signaling strong investor confidence in Reddit's market position and future prospects.

  • 8/13/2026POSITIVE
    Reddit Shares Surge on S&P 500 Inclusion Later This Month

    Reddit Inc. is set to be included in the S&P 500 index next week, a move that has already propelled its shares up by over 10% in after-hours trading. This off-cycle change by S&P Dow Jones Indices signifies a major milestone for the social media platform, often seen as a validation of its growth and market position. For investors, inclusion in the S&P 500 typically leads to increased demand for the stock as index funds are compelled to purchase shares to mirror the index's composition, potentially driving further price appreciation.

  • 7/30/2026NEGATIVE
    Reddit Shares Plunge by Record on Dearth of New AI Deals

    Reddit Inc. shares experienced their largest intraday decline on record following the company's latest earnings report, which notably omitted any new data licensing agreements. This absence of fresh AI-driven revenue deals has significantly disappointed investors who were anticipating a diversification of the social media platform's income streams. The lack of forward-looking announcements regarding lucrative partnerships in the artificial intelligence sector suggests a potential slowdown in monetizing its vast user-generated content for AI training purposes, a key growth narrative for the company.

  • 6/15/2026POSITIVE
    What's Going On With Reddit Stock Monday?

    Reddit Inc. shares experienced a significant surge of 10.8% on Monday, exhibiting meme-stock-like volatility. This sharp upward movement has captured investor attention, prompting analysis of key support and resistance levels for the stock. The pop suggests renewed speculative interest or positive sentiment surrounding the social media platform, potentially driven by recent platform developments or broader market trends favoring growth stocks. Investors are closely monitoring these technical levels to gauge the sustainability of the rally and identify potential entry or exit points.

  • 4/13/2026POSITIVE
    Why Reddit Stock Is Trending Higher On Monday?

    Reddit Inc. shares are experiencing a notable upward trend on Monday, driven by the announcement of a strategic partnership with Nectar Social. This collaboration is expected to enhance Reddit's social media capabilities and potentially unlock new revenue streams. Investors are viewing this development positively, anticipating that the integration with Nectar Social will bolster user engagement and expand the platform's reach within its target demographics. The partnership signifies Reddit's ongoing efforts to diversify its business model beyond advertising, a move that could lead to sustained growth and improved financial performance.

  • 3/20/2026POSITIVE
    Why Is Reddit Stock Trading Higher Today?

    Reddit Inc. shares experienced a notable increase today following a favorable development in its legal battle with AI firm Anthropic. A San Francisco County court has issued a tentative ruling in favor of Reddit, potentially impacting the ongoing dispute over data usage and intellectual property. This judicial support for Reddit's position could alleviate concerns about future litigation costs and reputational damage, thereby bolstering investor confidence in the social media platform's business model and its ability to protect its assets. The positive sentiment surrounding this legal victory may translate into sustained upward momentum for the stock.

  • 3/17/2026POSITIVE
    Reddit Stock: Why It May Finally Be Time to Buy the Dip

    Reddit's underlying business is experiencing significant growth, suggesting that the recent decline in its stock price may present a favorable buying opportunity for investors. The social media platform's engagement metrics and advertising revenue streams are reportedly on an upward trajectory, indicating a strengthening operational performance. This positive momentum, coupled with a potentially undervalued stock following a sell-off, could signal a rebound potential for RDDT. Investors are advised to consider this dip as a strategic entry point, anticipating future appreciation based on the company's improving fundamentals.

via Markets Gazette