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.
AI-Powered Future | Reddit's AI-driven search and product innovations position it as a potential disruptor in traditional search patterns, especially among younger users |
Financial Outlook | Analyst targets range from $75 to $220 per share, with consensus leaning towards "Buy". EBITDA projections for 2025 and 2026 raised significantly |
Ad Revenue Boost | New ad products drive 61% YoY growth in advertising revenue, with projections of 35% annual US ad revenue growth from 2024 to 2027 |
Engagement Evolution | Reddit's user growth shows promise, with global time spent up 8.8% YoY, but faces challenges in US market and Google traffic dependency |
Metrics to compare | RDDT | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipRDDTPeersSector | |
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P/E Ratio | 219.6x | −0.7x | 5.6x | |
PEG Ratio | 2.08 | −0.42 | 0.01 | |
Price / Book | 11.6x | 4.9x | 1.8x | |
Price / LTM Sales | 17.7x | 2.4x | 1.4x | |
Upside (Analyst Target) | 4.8% | 16.9% | 20.6% | |
Fair Value Upside | Unlock | 12.7% | 14.5% | Unlock |