From Nasdaq: 2025-04-27 05:52:00

Reddit (NYSE: RDDT) went public just over a year ago, with its stock soaring 562% to $225.23 in February. Growth in daily active unique users and ad revenue drove Reddit’s success. The company turned profitable in 2024, with revenue expected to rise 48% to 52% in Q1 2025.

Reddit’s unique platform blends news aggregation, discussion forums, and social media features, attracting high double-digit growth in DAUq users and ARPU. Partnerships with Google and OpenAI expanded its reach. Financially, Reddit’s margins improved, turning profitable in the second half of 2024.

With an enterprise value of $19.3 billion, Reddit trades at 11 times sales and 34 times adjusted EBITDA. Despite potential macro headwinds, Reddit’s growth potential remains strong. Analysts predict revenue to rise 36% in 2025, with a positive net profit. Reddit’s stock, previously overheated, now looks reasonably valued.

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Read more at Nasdaq: Down Nearly 30% in 2025: Is Reddit Stock a Buy?