Upside case
Bull case
$253+45.0%
RDDT would need investors to value it at roughly 51x earnings — about 16x more generous than today's 35x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
Reddit, Inc. (RDDT) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
28
analysts
18 bullish · 0 bearish · 28 covering RDDT
Strong Buy
1
Buy
17
Hold
10
Sell
0
Strong Sell
0
Consensus Target
$222
+27.3% vs today
Scenario Range
$121 – $253
Model bear to bull value window
Coverage
28
Published analyst ratings
Valuation Context
35.4x
Forward P/E · Market cap $33.5B
RDDT price targets
Three scenarios for where RDDT stock could go
Current
~$175
Confidence
63 / 100
Updated
Jun 18, 2026
Where we are now
Current · $175
Bear
$121
Base
$192
Bull
$253
Market caseClosest to today
Base case
$192+10.0%
This is close to how the market is already pricing RDDT — at roughly 39x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$121-30.7%
If investor confidence fades or macro conditions deteriorate, a 11x multiple contraction could push RDDT down roughly 31% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
Reddit, Inc.
RDDT · NYSECommunication ServicesInternet Content & InformationDecember year-end
Reddit operates a social media platform organized into thousands of topic-based communities called subreddits where users share content and discuss interests. It generates revenue primarily through advertising — accounting for over 90% of sales — with additional income from data licensing and premium subscriptions. Its key advantage is its massive, highly engaged user base that creates authentic, niche-specific content across virtually every imaginable topic.
Market Cap
$33.5B
Revenue TTM
$2.5B
Net Income TTM
$708M
Net Margin
28.6%
RDDT Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
89%Exceptional
12 quarters tracked
Revenue Beat Rate
89%Exceptional
vs consensus estimates
Avg EPS Surprise
+158.6%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 3 of 4Q3 2025
EPS
$0.45/$0.19
Revenue
$500M/$426M
Q4 2025
EPS
$0.80/$1.04
Revenue
$585M/$547M
Q1 2026
EPS
$1.24/$0.94
Revenue
$726M/$666M
Q2 2026
EPS
$1.01/$0.57
Revenue
$663M/$608M
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $0.45/$0.19 | +136.6% | $500M/$426M | +17.4% |
| Q4 2025 | $0.80/$1.04 | -23.1% | $585M/$547M | +7.0% |
| Q1 2026 | $1.24/$0.94 | +32.3% | $726M/$666M | +9.0% |
| Q2 2026 | $1.01/$0.57 | +77.5% | $663M/$608M | +9.1% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$3.0B
+23.0% YoY
FY2
$3.8B
+25.4% YoY
EPS Outlook
FY1
$4.13
+18.2% YoY
FY2
$4.27
+3.5% YoY
Trailing FCF (TTM)$869M
FCF Margin: 35.1%
Next Earnings
July 30, 2026
Expected EPS
$0.99
Expected Revenue
$729M
RDDT beat EPS estimates in 3 of 4 tracked quarters. A strong delivery record supports forward estimate credibility.
RDDT Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $2.2B
Product Mix
Latest annual revenue by segment or product family
Advertising
93.6%
+74.0% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
UNITED STATES
81.1%
+67.9% YoY
Tap, hover, or focus a slice to inspect segment detail.
Advertising is the largest disclosed segment at 93.6% of FY 2025 revenue, up 74.0% YoY.
UNITED STATES is the largest reported region at 81.1%, up 67.9% YoY.
RDDT Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Expensive versus peers
Fair value est. $72 — implies -59.0% from today's price.
Premium to Fair Value
59.0%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
RDDT
66.7x
vs
S&P 500
24.4x
+173% premium
vs Communication Services Trailing P/E
RDDT
66.7x
vs
Communication Services
15.3x
+336% premium
vs RDDT 5Y Avg P/E
Today
66.7x
vs
5Y Average
87.7x
24% discount
Forward PE
35.4x
S&P 500
18.8x
+88%
Communication Services
11.3x
+213%
5Y Avg
—
—
Trailing PE
66.7x
S&P 500
24.4x
+173%
Communication Services
15.3x
+336%
5Y Avg
87.7x
-24%
PEG Ratio
—
S&P 500
1.66x
—
Communication Services
0.64x
—
5Y Avg
—
—
EV/EBITDA
71.0x
S&P 500
15.2x
+367%
Communication Services
9.6x
+639%
5Y Avg
99.4x
-29%
Price/FCF
48.9x
S&P 500
20.7x
+136%
Communication Services
11.4x
+329%
5Y Avg
102.2x
-52%
Price/Sales
15.2x
S&P 500
3.1x
+391%
Communication Services
1.0x
+1390%
5Y Avg
21.9x
-31%
Dividend Yield
—
S&P 500
1.91%
—
Communication Services
3.43%
—
5Y Avg
—
—
| Metric | RDDT | S&P 500 | Communication Services | 5Y Avg RDDT |
|---|---|---|---|---|
| Forward PE | 35.4x | 18.8x+88% | 11.3x+213% | — |
| Trailing PE | 66.7x | 24.4x+173% | 15.3x+336% | 87.7x-24% |
| PEG Ratio | — | 1.66x | 0.64x | — |
| EV/EBITDA | 71.0x | 15.2x+367% | 9.6x+639% | 99.4x-29% |
| Price/FCF | 48.9x | 20.7x+136% | 11.4x+329% | 102.2x-52% |
| Price/Sales | 15.2x | 3.1x+391% | 1.0x+1390% | 21.9x-31% |
| Dividend Yield | — | 1.91% | 3.43% | — |
RDDT trades above S&P 500 benchmarks on 5 of 5 measured multiples — commands a broad premium across most valuation dimensions.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolRDDT Financial Health
Verdict
Exceptional
RDDT generates $869M in free cash flow at a 35.1% margin — 18.4% ROIC signals a durable competitive advantage.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$2.5B
Revenue Growth
TTM vs prior year
+70.6%
Gross Margin
Gross profit as a share of revenue
91.4%
Operating Margin
Operating income divided by revenue
25.1%
Net Margin
Net income divided by revenue
28.6%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$3.49
Free Cash Flow (TTM)
Cash generation after capex
$869M
FCF Margin
FCF as share of revenue — the primary cash quality signal
35.1%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
18.4%
ROA
Return on assets, trailing twelve months
23.1%
Cash & Equivalents
Liquid assets on the balance sheet
$954M
Net Cash
Cash exceeds total debt — no net leverage
$930M
Debt Serviceability
Net debt as a multiple of annual free cash flow
Net cash ✓
ROE
Return on equity, trailing twelve months
25.5%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
0.0%
Dividend
—
Buyback
0.0%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$0
Dividend / Share
Annualized trailing dividend per share
—
Payout Ratio
Share of earnings distributed as dividends
—
Shares Outstanding
Current diluted share count
192M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageRDDT Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
User Traffic Dependency
A large share of Reddit's visitors do not come to Reddit directly, posing a risk to ad revenue and engagement metrics.
Medium
Revenue Concentration
Reddit's reliance on user-supported features like Reddit Gold for revenue may limit diversification and scalability.
High Risk
AI Data Licensing Risks
Reddit's position in the AI data wars introduces risks around data licensing agreements and potential regulatory scrutiny.
Medium
Earnings Uncertainty
Projected EPS for the next fiscal year carries a confidence score of only 57/100, reflecting uncertainty in revenue and margin trends.
Lower
Market Sentiment Volatility
Analyst price targets and algorithmic forecasts show wide ranges, indicating potential volatility in market sentiment.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why RDDT Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
User-supported revenue model
Reddit's user-supported features like Reddit Gold help sustain server costs and promote financial independence from advertisers.
Strong community engagement
Reddit's platform fosters authentic human connection and endless conversation across thousands of niche communities, driving user retention.
Untapped profit potential
Improved user engagement, content authenticity, and optimized advertising present significant monetization opportunities for Reddit.
Market optimism growth
Reddit's stock has appreciated due to increasing investor confidence in its business model and growth prospects.
Diverse global user base
Reddit attracts a wide range of users worldwide, making it a unique and valuable platform for targeted content and advertising.
Analyst bullish sentiment
Analysts have issued buy ratings with significant upside potential, reflecting positive expectations for Reddit's future performance.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
RDDT Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$174.73
52W Range Position
34%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$119.27
+46.5% from the low
52-Week High
$282.95
-38.2% from the high
1 Month
+9.82%
3 Month
+22.33%
YTD
-27.8%
1 Year
+23.8%
3Y CAGR
+51.3%
5Y CAGR
+28.2%
10Y CAGR
+13.2%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
RDDT vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
35.4x
vs 10.7x median
+230% above peer median
Revenue Growth
+23.0%
vs +4.9% median
+370% above peer median
Net Margin
28.6%
vs 1.8% median
+1471% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
RDD RDDT Reddit, Inc. | $33.5B | 35.4x | +23.0% | 28.6% | Buy | +27.3% |
PIN PINS Pinterest, Inc. | $13.5B | 10.7x | +12.5% | 7.6% | Buy | +26.5% |
SNA SNAP Snap Inc. | $7.9B | — | +11.7% | -6.7% | Hold | +70.1% |
BMB BMBL Bumble Inc. | $345M | 2.9x | +3.5% | -71.0% | Hold | +39.5% |
MTC MTCH Match Group, Inc. | $8.2B | 13.4x | +4.9% | 18.8% | Buy | +16.0% |
IAC IAC IAC InterActive Corp. | $3.2B | — | +2.0% | 1.8% | Buy | +20.2% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
FAQ
7 questionsRDDT Investor Questions
Common questions answered from live analyst data and company financials.
01Is Reddit, Inc. (RDDT) stock a buy or sell in 2026?
Reddit, Inc. (RDDT) is rated Buy by Wall Street analysts as of 2026. Of 28 analysts covering the stock, 18 rate it Buy or Strong Buy, 10 rate it Hold, and 0 rate it Sell or Strong Sell. The consensus 12-month price target is $222, implying +27.3% from the current price of $175. The bear case scenario is $121 and the bull case is $253.
02What is the RDDT stock price target for 2026?
The Wall Street consensus price target for RDDT is $222 based on 28 analyst estimates. The high-end target is $300 (+71.7% from today), and the low-end target is $110 (-37.0%). The base case model target is $192.
03Is Reddit, Inc. (RDDT) stock overvalued in 2026?
RDDT trades at 35.4x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals expensive versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for Reddit, Inc. (RDDT) stock in 2026?
The primary risks for RDDT in 2026 are: (1) User Traffic Dependency — A large share of Reddit's visitors do not come to Reddit directly, posing a risk to ad revenue and engagement metrics. (2) AI Data Licensing Risks — Reddit's position in the AI data wars introduces risks around data licensing agreements and potential regulatory scrutiny. (3) Revenue Concentration — Reddit's reliance on user-supported features like Reddit Gold for revenue may limit diversification and scalability. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is Reddit, Inc.'s revenue and earnings forecast?
Analyst consensus estimates RDDT will report consensus revenue of $3.0B (+23.0% year-over-year) and EPS of $4.13 (+18.2% year-over-year) for the upcoming fiscal year. The following year, analysts project $3.8B in revenue.
06When does Reddit, Inc. (RDDT) report its next earnings?
Reddit, Inc. is expected to report its next earnings on approximately 2026-07-30. Consensus expects EPS of $0.99 and revenue of $729M. Over recent quarters, RDDT has beaten EPS estimates 89% of the time.
07How much free cash flow does Reddit, Inc. generate?
Reddit, Inc. (RDDT) generated $869M in free cash flow over the trailing twelve months — a free cash flow margin of 35.1%. RDDT returns capital to shareholders through and share repurchases ($0 TTM).