RDDT
Reddit, Inc.

Reddit, Inc.RDDT

Communication Services · Internet Content & Information
101.89USD
+5.97%
Nov 05, 2026
RDDT overview ready
Provider of licensed, continuously refreshed community content for AI training
Owner and operator of a large, continuously refreshed corpus of community discussions and user intent signals that can be licensed to AI developers while also monetizing the audience through advertising.
Theme not measured
No economic group is assigned yet.
Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
Attractive valuation
Current market expectations look undemanding relative to the level and quality of its cash generation.
Solid fundamentals
Free cash flow yield is strong.
Primary risk
Dependence on advertising revenue.
Market Nov 4Filing Sep 30Price action Nov 5Research Sep 8

Conviction Level

Theme Momentum has no canonical measurement for this company — a research-profile dimension, not an input to this score.

PriceAction1.4BusinessPerformance4.0BusinessQuality5.8Valuation7.9ThemeMomentum—Decelerating — Revenue is still growing (+53% YoY), but growth has slowed for 2 consecutive quarters, down from +69%. Diluted EPS is up 75% year over year ($1.40), but growth has slowed from +677%. — From filed financial statements. Describes the recent trajectory of the business, not the stock. 20 of the 100 Conviction points.

Conviction uses Price Action, Business Performance, Business Quality, Valuation. Theme Momentum is research context, not an input.

Theme momentumPrimary theme · group context, not entry timing
No economic group yet — pending research
Price
Loading price history…

Price Action

Price trend is broken
Longer-term context reads new trend, with a near-term setup of distribution pressure.
The tactical setup reads distribution pressure, but the weekly structure is broken.
EntryDamaged / breakdown

The technical structure itself is broken across timeframes — the weakest entry profile.

Key Financials

Market Cap
$20.6B
Avg Volume (60D)
5.9M
60 sessions
Revenue Growth YoY
+69.4%
FY2025 vs FY2024
Gross Margin
+91.5%
Operating Margin
+29.4%
Trailing twelve months
Free Cash Flow Yield
+5.8%
P/E
20.8x
Market metrics as of Nov 4, 2026
Financial results for the period ended Sep 30, 2026
Filed balance-sheet data as of Sep 30, 2026

Business Performance

Decelerating

Revenue is still growing (+53% YoY), but growth has slowed for 2 consecutive quarters, down from +69%. Diluted EPS is up 75% year over year ($1.40), but growth has slowed from +677%.

Latest reported: Q3 FY2026, ended Sep 30
Revenue growthSlowing
+53%
$895M in Q3 FY2026 · YoY
YoY growth, last 4 quarters
  1. n/a
  2. +69%
  3. +61%
  4. +53%
Earnings growthSlowing
+75%
Diluted EPS $1.40 vs $0.80 a year earlier · GAAP
Diluted EPS YoY (GAAP), last 4 quarters
  1. n/a
  2. +677%
  3. +178%
  4. +75%
Operating marginExpanding
29.2%
+5.5 pp YoY

Business Quality

5.8 / 10

How well the business earns on its assets, converts earnings to cash and funds itself — read from its SEC filings.

Fundamentals & Valuation

Two of the three valuation perspectives say cheap; peers is the dissenting view.
This company has a Cheap valuation stance because current market expectations look undemanding relative to the level and quality of its cash generation. It trades at a 5.8% free-cash-flow yield, which the underlying economics comfortably support.

Company Research

Thesis
Owner and operator of a large, continuously refreshed corpus of community discussions and user intent signals that can be licensed to AI developers while also monetizing the audience through advertising.
Opportunity
Moderate opportunity
AI developers and AI-search platforms increasingly need licensed, current, high-quality human-created content and data feeds for model training, retrieval, answer generation, and attribution-based product experiences.
Key risk
Dependence on advertising revenue.

Economic classification

Loading the economic classification…

Business & Markets

Communication Services · Internet Content & Information
What they do

Reddit, Inc. operates a digital community platform that enables users to engage in conversations, share content, and create communities based on specific interests worldwide.

How it earns

The company primarily generates revenue through advertising on its platform.

Products & services
User-generated content platform
Community forums (subreddits)
Customers & end markets
Individual users seeking online communities
Advertisers targeting digital audiences
Market position

Reddit is a leading digital community platform with a strong niche in interest-based social networking.

Demand drivers
Medium cyclicality

Advertising revenue can fluctuate with broader economic cycles impacting marketing budgets.