RDDT Stock Analysis: Reddit | NYSE
Internet Content & Information | NYSE, USA | Market Cap: 38.561m USD | 12M Return: 37.3% | Charts, Fundamentals & Technical Analysis
Avg Turnover: 723M
Qual. Beats: 4
Rev. Trend: 99.4%
Qual. Beats: 5
Warnings
No concerns identified
Tailwinds
No distinct edge detected
Seasonality 2.3 years of data
How good or bad each month usually is (without trend). The score below shows how much you can trust it: 0 = pure chance, >40 gets interesting and >55 is strong.
Reddit, Inc. (NYSE: RDDT) operates a global digital community platform where users can create and join interest-based communities, share links, images, and videos, and engage in discussions. Founded in 2005 and headquartered in San Francisco, the company went public in March 2024 and is classified within the Communication Services sector under the Interactive Media & Services sub-industry, a grouping that includes other user-generated content and social media platforms whose business models are largely built on advertising revenue and user engagement.
- US advertising revenue growth drives top-line expansion
- AI data licensing deals with Google and OpenAI boost high-margin revenue
- Daily active user growth in international markets accelerates
- Competition from TikTok and Discord pressures user engagement metrics
| Net Income: 707.5m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.25 > 0.02 and ΔFCF/TA 12.08 > 1.0 |
| NWC/Revenue: 126.1% < 20% (prev 147.8%; Δ -21.62% < -1%) |
| CFO/TA 0.25 > 3% & CFO 875.5m > Net Income 707.5m |
| Net Debt (-2.75b) to EBITDA (703.4m): -3.91 < 3 |
| Current Ratio: 12.73 > 1.5 & < 3 |
| Outstanding Shares: last quarter (202.5m) vs 12m ago 9.91% < -2% |
| Gross Margin: 91.37% > 18% (prev 90.82%; Δ 0.55% > 0.5%) |
| Asset Turnover: 83.55% > 50% (prev 59.48%; Δ 24.07% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBIT TTM and Interest Expense TTM) |
| A: 0.90 (Total Current Assets 3.39b - Total Current Liabilities 265.9m) / Total Assets 3.48b |
| B: -0.13 (Retained Earnings -467.1m / Total Assets 3.48b) |
| C: 0.23 (EBIT TTM 687.2m / Avg Total Assets 2.96b) |
| D: 10.44 (Book Value of Equity 3.18b / Total Liabilities 304.6m) |
| Altman-Z'' = 17.96 = AAA |
| DSRI: 0.87 (Receivables 522.9m/350.9m, Revenue 2.47b/1.45b) |
| GMI: 0.99 (GM 90.82% / 91.37%) |
| AQI: 0.64 (AQ_t 0.02 / AQ_t-1 0.03) |
| SGI: 1.71 (Revenue 2.47b / 1.45b) |
| TATA: -0.05 (NI 707.5m - CFO 875.5m) / TA 3.48b) |
| Beneish M = -2.85 (Cap -4..+1) = A |
As of July 15, 2026, the stock is trading at USD 200.93 with a total of 3,856,520 shares traded. Over the past week, the price has changed by +0.03%, over one month by +10.47%, over three months by +34.54% and over the past year by +37.27%.
Current recommended Stop Loss: 171.50 (which is 14.6% or 2.5 ATR below the current price).
Reddit has received a consensus analysts rating of 3.88. Therefore, it is recommended to buy RDDT.
- StrongBuy: 10
- Buy: 5
- Hold: 10
- Sell: 0
- StrongSell: 1
| Analysts Target Price | 225.9 | 12.4% |
P/E Trailing = 55.7967
P/E Forward = 42.9185
P/S = 15.5895
P/B = 11.8246
P/EG = 1.3991
Revenue TTM = 2.47b USD
EBIT TTM = 687.2m USD
EBITDA TTM = 703.4m USD
Long Term Debt = 14.1m USD (estimated: total debt 21.3m - short term 7.17m)
Short Term Debt = 7.17m USD (from shortTermDebt, last quarter)
Debt = 21.3m USD (from shortLongTermDebtTotal, last quarter) (leases 21.3m already included)
Net Debt = -2.75b USD (calculated: Debt 21.3m - CCE 2.77b)
Enterprise Value = 35.8b USD (38.6b + Debt 21.3m - CCE 2.77b)
Interest Coverage Ratio = unknown (Ebit TTM 687.2m / Interest Expense TTM 0.0)
EV/FCF = 41.22x (Enterprise Value 35.8b / FCF TTM 868.7m)
FCF Yield = 2.43% (FCF TTM 868.7m / Enterprise Value 35.8b)
FCF Margin = 35.12% (FCF TTM 868.7m / Revenue TTM 2.47b)
Net Margin = 28.60% (Net Income TTM 707.5m / Revenue TTM 2.47b)
Gross Margin = 91.37% ((Revenue TTM 2.47b - Cost of Revenue TTM 213.4m) / Revenue TTM)
Gross Margin QoQ = 91.52% (prev 91.91%)
Tobins Q-Ratio = 10.28 (Enterprise Value 35.8b / Total Assets 3.48b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 21.3m)
Taxrate = 0.34% (2.44m / 710.0m)
NOPAT = 684.8m (EBIT 687.2m * (1 - 0.34%))
Current Ratio = 12.73 (Total Current Assets 3.39b / Total Current Liabilities 265.9m)
Debt / Equity = 0.01 (Debt 21.3m / totalStockholderEquity, last quarter 3.18b)
Debt / EBITDA = -3.91 (Net Debt -2.75b / EBITDA 703.4m)
Debt / FCF = -3.16 (Net Debt -2.75b / FCF TTM 868.7m)
Total Stockholder Equity = 2.78b (last 4 quarters mean from totalStockholderEquity)
RoA = 23.90% (Net Income 707.5m / Total Assets 3.48b)
RoE = 25.48% (Net Income TTM 707.5m / Total Stockholder Equity 2.78b)
RoCE = 24.62% (EBIT 687.2m / Capital Employed (Equity 2.78b + L.T.Debt 14.1m))
RoIC = 22.08% (NOPAT 684.8m / Invested Capital 3.10b)
WACC = 14.13% (E(38.6b)/V(38.6b) * Re(14.14%) + D(21.3m)/V(38.6b) * Rd(0.0%) * (1-Tc(0.00)))
Discount Rate = 14.14% (= CAPM, Blume Beta Adj.) -> capped to 13.17%
Shares (quarterly) Correlation: 97.54 | Cagr: 10.03%
[DCF] Terminal Value 61.58% ; FCFF base≈646.5m ; Y1≈741.1m ; Y5≈1.09b
[DCF] Fair Price = 76.14 (EV 8.06b - Net Debt -2.75b = Equity 10.8b / Shares 142.0m; r=14.13% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: N/A | EPS CAGR: N/A | SUE: 1.31 | # QB: 4
Revenue Correlation: 99.42 | Revenue CAGR: 60.36% | SUE: 2.24 | # QB: 5
EPS current Quarter (2026-06-30): EPS=0.97 | Chg30d=+0.65% | Revisions=+0% | Analysts=21
EPS next Quarter (2026-09-30): EPS=1.26 | Chg30d=+0.31% | Revisions=+29% | Analysts=21
EPS current Year (2026-12-31): EPS=4.98 | Chg30d=+0.28% | Revisions=+38% | GrowthEPS=+90.0% | GrowthRev=+46.8%
EPS next Year (2027-12-31): EPS=6.49 | Chg30d=+0.40% | Revisions=+12% | GrowthEPS=+30.3% | GrowthRev=+32.0%
[Analyst] Revisions Ratio: +32% (up=11, down=5)