Reddit, Inc. (RDDT) Stock

Reddit, Inc. (RDDT) is a Technology stock trading at $180.31 (as of 2026-07-17), with a market capitalization of $36.52B and a trailing P/E of 51.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Reddit, Inc. operates a website that organizes online communities by topic, where users communicate through discussions that may include shared experiences, submitted links, and uploaded images and videos, along with replies to other posts. The company is headquartered in San Francisco and operates as a subsidiary of Advance Publications, Inc.

Understand Reddit, Inc.: how it makes money

Reddit runs a digital communities platform where people create and join topic-based communities and share posts like links, images, and videos, then Reddit monetizes the audience primarily through advertising revenue.

Reddit’s profit engine is monetizing daily reach and activity into advertising revenue, where ad performance and advertiser participation metrics (such as advertising spend return improvements and use of AI-powered creative features) are key signals that the ad demand side can translate user attention into revenue.

Revenue by segment (latest quarter)
Ads	$0.6B
Other	$0.0B

Business quality (Strong): Strong operating profitability and a large, measurable user base, but revenue appears concentrated in advertising, so results can be sensitive to advertiser demand and platform monetization effectiveness.

Valuation: Trades at 48× trailing earnings · $34B market cap.

Bull case

Large and consistent audience footprint: Average Daily Active Unique Users are 108.1M, with 121.0M Daily Active Users and 500.0M Weekly Active Users.
Profitability is high in the latest quarter: For the quarter ended 2026-03-31, gross margin is 91.5% and operating margin is 27.6%.
Strong advertiser outcome signals are tracked: Reddit tracks a metric for Return on Advertising Spend Improvement versus Prior Year (90%) and the share of advertisers using AI-powered creative features (50%).

Bear case

Revenue concentration in advertising: Advertising Revenue is 0.62B out of 0.7B total revenue for the quarter ended 2026-03-31, so changes in advertiser spending can meaningfully affect results.
Execution risk around monetization and efficiency initiatives: The company tracks Max Reduction in Cost per Action (17%) and FOSFA study related metrics (34% and 2.5), indicating profitability depends on achieving these improvements.
Limited visibility into monetization per user in the provided data: Average Revenue per Unique (Global, United States, International) values are shown as 0.0 in the provided candidates, which limits the ability to assess revenue per user from this dataset.

Valuation — source: SEC EDGAR (first-party)
Price	$180.31
Market Cap	$36.52B
P/E Ratio	51.6
EV / EBITDA	55.2
Price / Book	11.48
Price / Sales	14.76
FCF Yield	2.4%
DCF Value (model)	$71.23
DCF Upside vs Price	-60.5%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$2.20B
Net Margin	24.1%
Revenue Growth (YoY)	69.1%
EPS Growth (YoY)	664.3%
FCF Growth (YoY)	145.8%

Financial Health — source: SEC EDGAR
Altman Z-Score	72.40 (safe)

Valuation vs Sector & Industry
Stock P/E	51.6
Sector P/E (Technology)	34.7
Industry P/E (Business Services)	30.7
vs Sector	48.8%
vs Industry	68.0%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	VANGUARD GROUP INC ($3.06B)
Institutional Holders Tracked	10
Congressional Trades (recent)	4

Company
Sector	Technology
Industry	Business Services
CEO	Steven Ladd Huffman
Employees	2,233
Country	US
IPO Date	2024-03-21

Related Companies (Business model: Ad-Supported Digital Media / Social; 8 closest by market cap; US-domiciled)

Data as of 2026-07-17.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.