Company Overview - Reddit is an online social news aggregation and discussion platform organized around user-created communities or "subreddits" [4] - The company has a dual revenue model, monetizing through targeted digital advertising and enterprise data-licensing services [4] User Growth and Engagement - By the end of Q3 2025, Reddit reported 116 million daily active unique visitors and 50.2 million logged-in users, a significant increase from 2024 [5] - This growth was driven by major global events, trending market activity, and content partnerships with Google and OpenAI [5] Financial Performance - After going public in late 2024, Reddit's stock climbed approximately 40% in 2025, supported by a strong revenue growth of about 68% year-over-year in Q3 [6] - However, the stock has seen a pullback in 2026, down 21% year-to-date, indicating profit-taking after the earlier rally [6] Valuation Metrics - Reddit's trailing P/E ratio is around 111×, significantly higher than the Internet Content & Information industry average of roughly 32× [7] - Its price/sales and EV/sales ratios are in the high teens or 20s, well above typical tech peers [7] - On a PEG basis of 1.36, Reddit is considered not cheap, with analysts having already factored in high growth into the stock [7]