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.
| Profile Item | RDDT | SPOT |
|---|---|---|
| Name | Reddit Inc. Class A Common Stock | Spotify Technology S.A. |
| Country/Region | United States | Sweden |
| GICS Sector | Communication Services | Communication Services |
| GICS Industry Group | Media & Entertainment | Media & Entertainment |
| GICS Industry | Interactive Media & Services | Entertainment |
| GICS Sub-Industry | Interactive Media & Services | Movies & Entertainment |
| Market Capitalization | 18.36 billion USD | 123.97 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 21, 2024 | April 3, 2018 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| Total Return (1Y) | -50.09% | -2.62% |
| Total Return (3Y, Annualized) | -- | 52.24% |
| Total Return (5Y, Annualized) | -- | 16.60% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| Volatility (1Y, Annualized) | 74.81% | 47.29% |
| Beta (5Y) | 2.17 | 1.45 |
| Max Drawdown (5Y) | -66.40% | -74.68% |
| Avg. Volume (3M) | 6.23M | 1.66M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| 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%
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%
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%
Profitability Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| 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.
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.
Growth Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| 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
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
Financial Strength Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| Current Ratio (MRQ) | 10.80 | 2.13 |
| Debt / Equity (MRQ) | 0.01 | 0.05 |
| 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%
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%
Dividend Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| 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
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
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
Valuation Metrics
| Metric | RDDT | SPOT |
|---|---|---|
| P/E Ratio (TTM) | 19.41 | 36.75 |
| P/S Ratio (TTM) | 5.94 | 6.59 |
| P/B Ratio (MRQ) | 5.13 | 12.62 |
| Free Cash Flow Yield (TTM) | 4.42% | 1.15% |