Reddit Inc. (RDDT) Laps the Stock Market: Here's Why
RedditReddit(US:RDDT) ZACKS·2025-10-13 22:51

Company Performance - Reddit Inc. closed at $203.68, with a daily increase of +2.58%, outperforming the S&P 500's gain of 1.56% [1] - Over the last month, Reddit's shares decreased by 21.92%, while the Computer and Technology sector gained 1.06% and the S&P 500 gained 0.41% [1] Upcoming Financial Results - Reddit is set to announce its earnings on October 30, 2025, with an expected EPS of $0.52, reflecting a 225% growth year-over-year [2] - The Zacks Consensus Estimate projects net sales of $549.69 million, a 57.8% increase from the previous year [2] Annual Forecast - For the entire year, the Zacks Consensus Estimates forecast earnings of $1.87 per share and revenue of $2.06 billion, indicating increases of +156.16% and +58.59% respectively compared to the previous year [3] Analyst Estimates - Recent changes to analyst estimates for Reddit reflect positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates these estimate changes, currently ranks Reddit as 1 (Strong Buy) [6] Valuation Metrics - Reddit is trading at a Forward P/E ratio of 105.92, significantly higher than the industry average of 28.54 [7] - The company's PEG ratio stands at 3.03, compared to the Internet - Software industry average of 2.09 [7] Industry Context - The Internet - Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 77, placing it in the top 32% of over 250 industries [8]