In the latest close session, Reddit Inc. (RDDT) was up +1.91% at $200.82. The stock outperformed the S&P 500, which registered a daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.31%, and the technology-dominated Nasdaq saw an increase of 0.89%.
The company’s stock has dropped by 16.39% in the past month, falling short of the Computer and Technology sector’s loss of 0.5% and the S&P 500’s gain of 0.16%.
Investors will be eagerly watching for the performance of Reddit Inc. in its upcoming earnings disclosure. The company’s earnings report is set to be unveiled on October 30, 2025. It is anticipated that the company will report an EPS of $0.52, marking a 225% rise compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $549.69 million, indicating a 57.8% increase compared to the same quarter of the previous year.
RDDT’s full-year Zacks Consensus Estimates are calling for earnings of $1.87 per share and revenue of $2.06 billion. These results would represent year-over-year changes of +156.16% and +58.6%, respectively.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To take advantage of this, we’ve established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 3.04% increase. Reddit Inc. presently features a Zacks Rank of #1 (Strong Buy).
Digging into valuation, Reddit Inc. currently has a Forward P/E ratio of 105.12. This valuation marks a premium compared to its industry average Forward P/E of 29.4.
We can also see that RDDT currently has a PEG ratio of 3.01. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company’s expected earnings growth rate. Internet – Software stocks are, on average, holding a PEG ratio of 2.11 based on yesterday’s closing prices.
