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RDDT vs. SPOT: Reddit vs. Spotify Stock Comparison

How do Reddit (RDDT) and Spotify (SPOT) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Reddit (RDDT) and Spotify (SPOT) both fall under the Media & Entertainment industry group, but RDDT is classified in Interactive Media & Services while SPOT is classified in Entertainment.

Spotify (SPOT) has been public since April 3, 2018, giving it a longer listed trading history, while Reddit (RDDT) listed on March 21, 2024 and still has a shorter public-market record.

Company profile comparison for Reddit (RDDT) and Spotify (SPOT)
Profile ItemRDDTSPOT
NameReddit Inc. Class A Common StockSpotify Technology S.A.
Country/RegionUnited StatesSweden
GICS SectorCommunication ServicesCommunication Services
GICS Industry GroupMedia & EntertainmentMedia & Entertainment
GICS IndustryInteractive Media & ServicesEntertainment
GICS Sub-IndustryInteractive Media & ServicesMovies & Entertainment
Market Capitalization18.36 billion USD123.97 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 21, 2024April 3, 2018
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

RDDT
SPOT
GSPC
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Reddit (RDDT) vs. Spotify (SPOT), with S&P 500 (GSPC) for reference: 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 Spotify (SPOT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Reddit (RDDT) and Spotify (SPOT). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Total Return (1Y)-50.09%-2.62%
Total Return (3Y, Annualized)--52.24%
Total Return (5Y, Annualized)--16.60%

Risk Profile

Drawdown History

RDDT
SPOT
GSPC
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Reddit (RDDT) vs. Spotify (SPOT), with S&P 500 (GSPC) for reference: 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 Spotify (SPOT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Volatility (1Y, Annualized)74.81%47.29%
Beta (5Y)2.171.45
Max Drawdown (5Y)-66.40%-74.68%
Avg. Volume (3M)6.23M1.66M

Risk-Adjusted Performance

Risk-Return Positioning

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RDDT and SPOT are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Sharpe Ratio (1Y)-0.73-0.15
Sortino Ratio (1Y)-0.97-0.22

Profitability

ROE (TTM)

Both Reddit (RDDT) at 32.03% and Spotify (SPOT) at 35.81% sit in the top peer quartile for ROE, suggesting each generates more profit from shareholders’ equity than typical industry peers.

RDDT

Media & Entertainment industry group

32.03%

Max
49.92%
RDDT
32.03%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%

SPOT

Media & Entertainment industry group

35.81%

Max
49.92%
SPOT
35.81%
Q3
17.95%
Median
7.20%
Q1
-4.53%
Min
-26.31%
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their ROE against the Media & Entertainment industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Reddit (RDDT) at 32.11% and Spotify (SPOT) at 15.73% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

RDDT

Media & Entertainment industry group

32.11%

Max
32.91%
RDDT
32.11%
Q3
11.75%
Median
5.04%
Q1
-4.17%
Min
-25.14%

SPOT

Media & Entertainment industry group

15.73%

Max
32.91%
SPOT
15.73%
Q3
11.75%
Median
5.04%
Q1
-4.17%
Min
-25.14%
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their net margin against the Media & Entertainment industry group benchmark.

Operating Margin (TTM)

Reddit (RDDT) at 29.23% operates in the top operating margin quartile, ahead of Spotify (SPOT) at 13.52%, which runs around its industry’s norm.

RDDT

Media & Entertainment industry group

29.23%

Max
40.16%
RDDT
29.23%
Q3
18.72%
Median
8.63%
Q1
1.90%
Min
-22.08%

SPOT

Media & Entertainment industry group

13.52%

Max
40.16%
Q3
18.72%
SPOT
13.52%
Median
8.63%
Q1
1.90%
Min
-22.08%
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their operating margin against the Media & Entertainment industry group benchmark.

Profitability Metrics

Profitability metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
ROE (TTM)32.03%35.81%
ROA (TTM)16.60%11.82%
Net Margin (TTM)32.11%15.73%
Operating Margin (TTM)29.23%13.52%
Gross Margin (TTM)91.55%33.12%

Growth

Revenue Growth

Reddit (RDDT) at 69.40% clears its industry range for revenue growth, far stronger top-line momentum than Spotify (SPOT) at 9.65%, which is closer to a typical peer reading.

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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Spotify (SPOT) reports EPS growth of 91.09%, ranked against its industry; Reddit (RDDT) has no EPS growth figure this period.

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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Revenue Growth (YoY)69.40%9.65%
Revenue Growth (3Y CAGR)48.93%13.59%
EPS Growth (YoY)--91.09%
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Spotify (SPOT) at 2.13 keeps current ratio within its industry’s typical mid-range, while Reddit (RDDT) at 10.80 sits above its industry’s typical mid-range — comfortable liquidity, though possibly with more idle current assets relative to peers.

RDDT

Media & Entertainment industry group

10.80

RDDT
10.80
Max
4.69
Q3
2.53
Median
1.52
Q1
0.95
Min
0.28

SPOT

Media & Entertainment industry group

2.13

Max
4.69
Q3
2.53
SPOT
2.13
Median
1.52
Q1
0.95
Min
0.28
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their current ratio against the Media & Entertainment industry group benchmark.

Debt / Equity (MRQ)

Both Reddit (RDDT) at 0.01 and Spotify (SPOT) at 0.05 keep leverage in the lower quartile of their industries, with less balance-sheet debt relative to equity than most peers.

RDDT

Media & Entertainment industry group

0.01

Max
3.65
Q3
1.69
Median
0.46
Q1
0.17
RDDT
0.01
Min
0.00

SPOT

Media & Entertainment industry group

0.05

Max
3.65
Q3
1.69
Median
0.46
Q1
0.17
SPOT
0.05
Min
0.00
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their debt-to-equity ratio against the Media & Entertainment industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Current Ratio (MRQ)10.802.13
Debt / Equity (MRQ)0.010.05
Net Debt / EBITDA-3.25-2.40

Dividends

Dividend Yield (TTM)

Neither Reddit (RDDT) nor Spotify (SPOT) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

RDDT

Media & Entertainment industry group

0.00%

Max
1.33%
Q3
0.65%
RDDT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
1.33%
Q3
0.65%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their dividend yield against the Media & Entertainment industry group benchmark.

Dividend Payout Ratio (TTM)

Neither Reddit (RDDT) nor Spotify (SPOT) pays a dividend this period — they may reinvest, use buybacks, or simply not return cash through dividends.

RDDT

Media & Entertainment industry group

0.00%

Max
71.43%
Q3
28.98%
RDDT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%

SPOT

Media & Entertainment industry group

0.00%

Max
71.43%
Q3
28.98%
SPOT
0.00%
Median
0.00%
Q1
0.00%
Min
0.00%
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their payout ratio against the Media & Entertainment industry group benchmark.

Dividend Metrics

Dividend metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
Dividend Yield (TTM)0.00%0.00%
Dividend Payout Ratio (TTM)0.00%0.00%

Valuation

P/E Ratio (TTM)

Reddit (RDDT) at 19.41 is near its industry’s usual P/E ratio, while Spotify (SPOT) at 36.75 sits in the richer quartile — SPOT needs stronger growth or earnings quality to justify the premium.

RDDT

Media & Entertainment industry group

19.41

Max
51.21
Q3
28.90
RDDT
19.41
Median
17.98
Q1
11.53
Min
1.64

SPOT

Media & Entertainment industry group

36.75

Max
51.21
SPOT
36.75
Q3
28.90
Median
17.98
Q1
11.53
Min
1.64
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their P/E ratio against the Media & Entertainment industry group benchmark.

P/S Ratio (TTM)

Both Reddit (RDDT) at 5.94 and Spotify (SPOT) at 6.59 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

RDDT

Media & Entertainment industry group

5.94

Max
7.43
RDDT
5.94
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00

SPOT

Media & Entertainment industry group

6.59

Max
7.43
SPOT
6.59
Q3
3.82
Median
1.40
Q1
0.70
Min
0.00
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their P/S ratio against the Media & Entertainment industry group benchmark.

P/B Ratio (MRQ)

Reddit (RDDT) at 5.13 sits near its industry’s typical P/B ratio, while Spotify (SPOT) at 12.62 prices above its benchmark range — SPOT looks rich relative to book.

RDDT

Media & Entertainment industry group

5.13

Max
11.45
Q3
5.30
RDDT
5.13
Median
1.84
Q1
0.77
Min
-2.61

SPOT

Media & Entertainment industry group

12.62

SPOT
12.62
Max
11.45
Q3
5.30
Median
1.84
Q1
0.77
Min
-2.61
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Reddit (RDDT) vs. Spotify (SPOT): A comparison of their P/B ratio against the Media & Entertainment industry group benchmark.

Valuation Metrics

Valuation metrics for Reddit (RDDT) and Spotify (SPOT)
MetricRDDTSPOT
P/E Ratio (TTM)19.4136.75
P/S Ratio (TTM)5.946.59
P/B Ratio (MRQ)5.1312.62
Free Cash Flow Yield (TTM)4.42%1.15%