Reddit

RDDT

Market cap $41B

Reddit is seeing robust free cash flow growth as advertisers increase spending on the discussion-based social media platform. MercadoLibre continues to show significant potential to expand in Latin America's e-commerce market.

While advertising revenue is firmly in the driver's seat for growth, accounting for 94% of revenue in Q3, Reddit does have some opportunities from AI data licensing. In terms of user engagement, Reddit notched 3.8 billion visits in September, down (5.4%) MoM after rising 1.5% MoM in August, per Similarweb, slightly underperforming Facebook. Reddit is trading at a forward P/S ratio of 15.9x and is more than double of Meta's forward P/S ratio of 7.4x.

Netflix, Reddit, and Millicom International show constructive technical indicators

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?

Zacks.com users have recently been watching Reddit Inc. (RDDT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.

Reddit's AI tools boost engagement and revenue as the platform expands search features and strengthens monetization.

Reddit proved business resilience supported by strong execution capability. Advertising revenue and ARPU are growing rapidly, with fast EBITDA margin improving toward industry-leading levels. Valuation is attractive, with a projected 30% revenue CAGR and strong capital returns justifying a premium, and a target price of $255 is set.

Reddit (RDDT) co-founder Alexis Ohanian is trying to anticipate the next wave of innovations to hit Silicon Valley. The Seven Seven Six founder and general partner joins Yahoo Finance executive editor Brian Sozzi for an extensive discussion about the future of artificial intelligence and the kinds of technology the next generation of founders and his children will grow up with.

Investor obsession with ChatGPT “killing” Reddit completely misses the point—Reddit's daily users are still climbing, not falling. RDDT is projected to achieve over 40% year-over-year revenue growth in 2026, driven by steady user gains and new product initiatives. Valuation is attractive, with RDDT trading at an adjusted PEG ratio of 1X.

Reddit Inc. (RDDT) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.