RDDT stock's price surge in the past six months, along with rising users, higher ARPU, and expanding ad tools, underscores momentum behind its premium valuation.
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.
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.
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.
Reddit's strong ad growth, global expansion, and AI-driven tools help the company to justify its premium valuation.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Reddit's surging ad revenues, rising user engagement, and expanding search-led features position it ahead of Snapchat in the social media growth race.
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.