RDDT
Reddit Inc
$205.55
▲ 5.6%Updated Today 12:11 PM ET
RDDT at a glance — five pillars scored 0–100 from real filed financials.
Overall: Strong · 83/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▲ Up 30.8% over the last 12 months
Market Cap
$37.48B
P/E
52.97x
Forward P/E (est.)
37.83x
ROE
25.5%
Revenue Growth
70.6%
EPS Growth
460.4%
Profit Margin
28.6%
FCF Yield
—
Debt / Equity
0x
ROIC
11.0%
Interest Coverage
—
Current Ratio
12.73x
Dividend Yield
—
Implied Growth (rev. DCF)
7.0%
Rating Score
83/100
Reddit Inc (RDDT) is a large-cap company in the Media industry, part of the Communication Services sector of the S&P 500, with a market value around $37.48B.
In its latest reported year it generated about $2.20B in revenue and $529.72M in net profit.
Our model rates RDDT Strong (83/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what RDDT's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. RDDT trades near $205.55, above its 50-day average ($165.52) and 200-day average ($184.23). Price above both averages, with the shorter one above the longer, is the textbook definition of an uptrend — momentum favours buyers.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 69 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. RDDT's is $12.36 (~6.0% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month RDDT found buyers near $152.65 (support) and sellers near $206.63 (resistance); its 52-week range is $119.27–$282.95. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.7× the 20-day average — lighter than usual, so the move carries less conviction. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
3Y CAGR
48.9%
Revenue moved from $666.70M in 2022 to $2.20B in 2025, a 48.9% compound annual growth rate. The most recent year grew a strong 70.6% year over year. Consistent top-line growth is one sign of healthy demand.
Gross Margin
91.4%
Operating Margin
20.1%
Net Margin
24.1%
ROE
25.5%
Reddit Inc keeps about 28.6% of each sales dollar as net profit, with a 91.4% gross margin and 20.1% operating margin. Return on equity is 25.5% and return on invested capital about 11.0%. Margins this wide usually signal pricing power or a cost advantage.
Total Debt
—
Net Debt
—
Net Debt / EBITDA
—
Debt / Equity
0x
Leverage: debt-to-equity is 0.0x, with a current ratio of 12.7x. That is a conservative balance sheet — a cushion in downturns.
Operating CF
$690.88M
Free Cash Flow
$684.17M
FCF Margin
31.1%
In the latest year Reddit Inc produced about $690.88M of operating cash flow and $684.17M of free cash flow after capital spending. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.
P/E
52.97x
P/S
17.02x
P/B
14.87x
EV / EBITDA
78.84x
RDDT trades at 53.0x trailing earnings (about 37.8x on estimated forward earnings), 17.0x sales, and 14.9x book value. Reverse-engineering today's price implies the market expects roughly 7.0% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
—
Current price
$205.55
Starting FCF (latest 10-K)
$684.17M
Growth, years 1–5
20.0%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where this stock sits versus what most companies trade at.
Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.
The case for RDDT:
- Revenue is growing 70.6% a year, a sign of real demand.
- High net margins (28.6%) point to pricing power or efficiency.
- Strong return on equity (25.5%) shows capital is put to work well.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Our model's overall read is Strong (83/100).
The case against RDDT:
- A rich 53.0x earnings multiple prices in a lot of growth.
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Valuation risk — at 53.0x earnings, disappointing results could compress the multiple.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the fundamentals screen favourably: Reddit Inc is a large-cap communication services business still growing nicely, with solid profitability, and a sound balance sheet. It trades at 53.0x earnings, which our model scores Strong (83/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
RDDT — frequently asked questions
Is RDDT a good stock to buy?
We don't give buy or sell advice. Our model rates Reddit Inc Strong (83/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is RDDT's rating on The Stocks School?
Reddit Inc currently scores 83/100 (Strong) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does RDDT's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Reddit Inc's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for RDDT calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this RDDT analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell RDDT. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.