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What Are You Really Paying For Reddit's Ad Growth?

Reddit (RDDT) stock is down about 35% over the past twelve months. Yet at about $155 it still trades at about 26.5 times trailing adjusted earnings, meaning normalized net income with stock-based compensation added back. The forecast that makes Reddit look cheaper does not need wider margins. It needs advertising to keep growing while search referrals stay volatile.

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Earnings· September 11, 2026 at 09:47 PM
Authored by·Editorially reviewed
Onur Erkan Yıldız
Founder, Financial Engineer · CMB-licensed
NeutralMedium impact

AI summary

Reddit (RDDT) stock is down about 35% over the past twelve months. Yet at about $155 it still trades at about 26.5 times trailing adjusted earnings, meaning normalized net income with stock-based compensation added back. The forecast that makes Reddit look cheaper does not need wider margins. It needs advertising to keep growing while search referrals stay volatile.

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