Reddit shares have fallen 39% in 2026, pushing the stock to its lowest-ever forward earnings multiples. The stock now trades at less than 19 times analysts' consensus earnings estimate for the next four quarters and under 15 times the estimate for the following year. Revenue rose 61% in the latest quarter, with net income, adjusted EBITDA, and free cash flow more than doubling. The company has diversified beyond advertising through a premium ad-free tier and data licensing deals with major AI platforms, though non-advertising revenue still accounts for just 5% of the business. International users represent 59% of daily active uniques but generate less than 21% of revenue, suggesting room for growth. Reddit also guided for 47% to 49% revenue growth in the current quarter, up from its prior 43% to 45% target.
Reddit, Inc.Stock at historically low valuation despite strong growth and raised guidance
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