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Reddit (RDDT) Stock Analysis

This is a peer-relative look at Reddit (RDDT): its performance, risk, profitability, growth, financial strength, dividend, and valuation are each measured against its Media & Entertainment peers, so every number reads in context rather than in isolation.

Company Profile

Company profile fields for Reddit (RDDT)
Profile ItemRDDT
NameReddit Inc. Class A Common Stock
Country/RegionUnited States
GICS SectorCommunication Services
GICS Industry GroupMedia & Entertainment
GICS IndustryInteractive Media & Services
GICS Sub-IndustryInteractive Media & Services
Market Capitalization18.36 billion USD
CurrencyUSD
ExchangeNYSE
Listing DateMarch 21, 2024
Security TypeCommon Stock

Price Performance

Cumulative Growth

RDDT
GSPC
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Reddit (RDDT) vs. S&P 500 (GSPC): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Reddit (RDDT) and S&P 500 (GSPC). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Reddit (RDDT) and S&P 500 (GSPC). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Total Return (1Y)-50.09%8.37%
Total Return (3Y, Annualized)--9.50%
Total Return (5Y, Annualized)---6.51%

Risk Profile

Drawdown History

RDDT
GSPC
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Reddit (RDDT) vs. S&P 500 (GSPC): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Reddit (RDDT) and S&P 500 (GSPC). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Volatility (1Y, Annualized)74.81%43.78%
Beta (5Y)2.170.92
Max Drawdown (5Y)-66.40%-69.17%

Risk-Adjusted Performance

Risk-Return Positioning

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Each dot is a stock plotted by 1-year volatility (risk) and 1-year return. RDDT is highlighted; the dashed line is the Capital Allocation Line from the risk-free rate through the industry median — dots above it are stronger on a risk-adjusted basis.

Risk-Adjusted Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Sharpe Ratio (1Y)-0.730.10
Sortino Ratio (1Y)-0.970.15

Profitability

ROE (TTM)

Reddit (RDDT) posts ROE of 32.03%, in the upper peer quartile. That suggests the company earns more from each dollar of shareholders’ equity than most industry peers, a useful capital-efficiency signal.

RDDT

Media & Entertainment industry group

32.03%

Group distribution
Max
49.92%
RDDT
32.03%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%
Largest peers
NFLX
53.46%
GOOGL
44.29%
GOOG
44.29%
SPOT
35.81%
META
32.26%
RDDT
32.03%
DIS
8.01%
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Where Reddit (RDDT) stands on ROE within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Net Margin (TTM)

Reddit (RDDT) keeps 32.11% of revenue as net profit, putting net margin in the upper peer quartile. After operating costs, interest, and taxes, more of each sales dollar reaches shareholders than it does at most industry peers.

RDDT

Media & Entertainment industry group

32.11%

Group distribution
Max
32.91%
RDDT
32.11%
Q3
11.75%
Median
5.04%
Q1
-4.17%
Min
-25.14%
Largest peers
GOOGL
50.03%
GOOG
50.03%
RDDT
32.11%
META
31.15%
NFLX
29.69%
SPOT
15.73%
DIS
8.70%
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Where Reddit (RDDT) stands on net margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Operating Margin (TTM)

Reddit (RDDT) turns 29.23% of revenue into operating profit, putting operating margin in the upper peer quartile. Before financing and taxes enter the picture, the day-to-day business keeps more of each sales dollar than most industry peers.

RDDT

Media & Entertainment industry group

29.23%

Group distribution
Max
40.16%
RDDT
29.23%
Q3
18.72%
Median
8.63%
Q1
1.90%
Min
-22.08%
Largest peers
META
35.41%
NFLX
34.63%
GOOGL
31.81%
GOOG
31.81%
RDDT
29.23%
DIS
19.30%
SPOT
13.52%
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Where Reddit (RDDT) stands on operating margin within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Profitability Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
ROE (TTM)32.03%7.20%
ROA (TTM)16.60%3.36%
Net Margin (TTM)32.11%5.04%
Operating Margin (TTM)29.23%8.63%
Gross Margin (TTM)91.55%50.97%

Growth

Revenue Growth

Reddit (RDDT) grew revenue 69.40%, above the industry benchmark range. Demand is expanding faster than at any typical peer, though growth that far ahead of the group is worth checking for acquisitions or other one-off contributions.

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Reddit (RDDT): Revenue Growth across different time periods, set against Media & Entertainment industry-group medians.

EPS Growth

No usable EPS growth is available for Reddit (RDDT) this period, so the earnings-momentum read is skipped.

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Reddit (RDDT) doesn't report EPS Growth this period; the bars show the Media & Entertainment industry-group medians on their own.

Growth Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Revenue Growth (YoY)69.40%4.57%
Revenue Growth (3Y CAGR)48.93%5.19%
EPS Growth (YoY)--1.00%
EPS Growth (3Y CAGR)--25.23%

Financial Strength

Current Ratio (MRQ)

Reddit (RDDT) has current ratio of 10.80, above the industry’s typical middle range. Liquidity looks ample versus peers, though an unusually high cushion can also mean idle current assets or inefficient working capital.

RDDT

Media & Entertainment industry group

10.80

Group distribution
RDDT
10.80
Max
4.69
Q3
2.53
Median
1.52
Q1
0.95
Min
0.28
Largest peers
RDDT
10.80
GOOGL
2.79
GOOG
2.79
SPOT
2.13
META
1.90
NFLX
1.08
DIS
0.71
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Where Reddit (RDDT) stands on current ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Debt / Equity (MRQ)

Reddit (RDDT) has debt-to-equity ratio of 0.01, in the lower-leverage quartile for its industry. Borrowing is modest relative to equity compared with most peers, which can leave more flexibility through a cycle.

RDDT

Media & Entertainment industry group

0.01

Group distribution
Max
3.65
Q3
1.69
Median
0.46
Q1
0.17
RDDT
0.01
Min
0.00
Largest peers
NFLX
0.60
META
0.42
DIS
0.39
GOOGL
0.22
GOOG
0.22
SPOT
0.05
RDDT
0.01
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Where Reddit (RDDT) stands on debt-to-equity ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Financial Strength Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Current Ratio (MRQ)10.801.52
Debt / Equity (MRQ)0.010.46
Net Debt / EBITDA-3.251.29

Dividends

Dividend Yield (TTM)

Reddit (RDDT) pays no dividend, leaving dividend yield at 0.00% this period. Shareholders may still receive value through reinvestment or buybacks, but there is no dividend income to compare here.

RDDT

Media & Entertainment industry group

0.00%

Group distribution
Max
1.33%
Q3
0.65%
RDDT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
DIS
1.28%
META
0.35%
GOOG
0.31%
GOOGL
0.30%
RDDT
0.00%
NFLX
0.00%
SPOT
0.00%
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Where Reddit (RDDT) stands on dividend yield within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Payout Ratio (TTM)

Reddit (RDDT) paid no earnings out as dividends this period, leaving payout ratio at 0.00%. There is no dividend payout to size against earnings.

RDDT

Media & Entertainment industry group

0.00%

Group distribution
Max
71.43%
Q3
28.98%
RDDT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
Largest peers
DIS
30.93%
META
7.16%
GOOGL
4.49%
GOOG
4.49%
RDDT
0.00%
NFLX
0.00%
SPOT
0.00%
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Where Reddit (RDDT) stands on payout ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Dividend Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Reddit (RDDT) trades at P/E ratio of 19.41, near the industry’s usual earnings multiple. The stock is not showing a clear peer discount or premium on trailing earnings.

RDDT

Media & Entertainment industry group

19.41

Group distribution
Max
51.21
Q3
28.90
RDDT
19.41
Median
17.98
Q1
11.53
Min
1.64
Largest peers
SPOT
36.75
DIS
24.07
META
20.82
RDDT
19.41
NFLX
18.33
GOOGL
14.87
GOOG
14.83
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Where Reddit (RDDT) stands on P/E ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/S Ratio (TTM)

Reddit (RDDT) trades at 5.94 on P/S ratio, in the higher sales-valuation quartile. Investors are paying up for each dollar of revenue, so stronger margins, growth, or revenue quality need to carry that price.

RDDT

Media & Entertainment industry group

5.94

Group distribution
Max
7.43
RDDT
5.94
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00
Largest peers
GOOGL
7.43
GOOG
7.41
SPOT
6.59
META
6.46
RDDT
5.94
NFLX
5.24
DIS
2.04
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Where Reddit (RDDT) stands on P/S ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

P/B Ratio (MRQ)

Reddit (RDDT) trades at 5.13 on P/B ratio, roughly in line with the industry’s normal price-to-book range. Its balance sheet is not being priced at a clear discount or premium versus peers.

RDDT

Media & Entertainment industry group

5.13

Group distribution
Max
11.45
Q3
5.30
RDDT
5.13
Median
1.84
Q1
0.77
Min
-2.61
Largest peers
SPOT
12.62
NFLX
8.89
META
5.73
GOOGL
5.31
GOOG
5.29
RDDT
5.13
DIS
1.84
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Where Reddit (RDDT) stands on P/B ratio within its Media & Entertainment peer group — the box is the group’s distribution and the dots its largest members.

Valuation Metrics

Reddit (RDDT) metric values compared with Media & Entertainment industry-group medians
MetricCurrent stock: RDDTIndustry group median
P/E Ratio (TTM)19.4117.98
P/S Ratio (TTM)5.941.40
P/B Ratio (MRQ)5.131.84
Free Cash Flow Yield (TTM)4.42%7.41%