- Investing.com
Reddit, Inc. operates a digital community in the United States and internationally. The company’s platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
Growth Challenges | Reddit faces decelerating user growth in mature markets, with U.S. time spent growth slowing to 1.1% year-over-year, raising concerns about user retention |
Ad Revenue Boost | Explore Reddit's improving ad platform, with 61% year-over-year growth in Q1 2025, driven by new formats like Dynamic Product Ads and increased active advertisers |
Global Expansion | Learn about Reddit's international growth strategy, leveraging machine translation in 13 languages to accelerate user acquisition in non-English speaking markets |
Search Volatility | Delve into Reddit's vulnerability to search algorithm changes, with 25-30% of traffic from Google, and its potential impact on visibility and user acquisition |
Metrics to compare | RDDT | Sector Sector - Average of metrics from a broad group of related Technology sector companies | Relationship RelationshipRDDTPeersSector | |
---|---|---|---|---|
P/E Ratio | 178.2x | −7.1x | 7.1x | |
PEG Ratio | 1.49 | −1.07 | 0.01 | |
Price/Book | 16.1x | 5.6x | 1.8x | |
Price / LTM Sales | 23.1x | 4.3x | 1.5x | |
Upside (Analyst Target) | 10.5% | 17.4% | 22.2% | |
Fair Value Upside | Unlock | 3.8% | 12.1% | Unlock |