r/redditstock

When the S&P inclusion was announced, people are so hyped, with 100s of posts saying stock is going to take off or head toward 200s, etc. Now, a couple days later, it's literally joever, stock is tanking, heading to under 100s after it crashes to the level was previously.

It seems like whenever the sentiments has even been extremely bullish or bearish, the stock usually does the opposite. Anyway, I've been in and out Reddit a few times this year, and made some small profits.

Based on the current vibes and the discounts, I'm went all in with 220 shares @ 161.50. Planning to hold to earnings and aiming 200+.

Is there news coming that I’m not aware of?

Or is this just panic?

I have no clue.

I own over 1,000 shares and I love Reddit but this sentiment needs to change.

Management has been silent too. I’m not saying I could do a better job but something needs to change otherwise this will be a dud for a while.

It’s a long term hold for me but I hate to see a great company get taken down by a narrative.

Reddit management needs to taper down SBC and also address the risks instead of PR issued statements about AI deals and product changes / Google SEO.

We need more.

I’m over this stock and somewhat over Reddit . For several reasons:

As a user, I do find AI search results from Google taking up some but not all, of my interest/need for Reddit.

As an investor, I don’t see the ads being particularly relevant. I’ve maybe once or twice clicked on one. Never purchased anything on Reddit.

As an investor, I find the insider dumping to be a BIT over the top. Not as much as the crowd in here, but I get their point and agree with the general sentiment.

As a user, I find a lot of bots. Not in some communities, but others are completely filled with them.

As an investor, I find the lack of transparency around the intent and progress surrounding data deals as inexcusable.

And for what it’s worth, as someone with a legal degree, but a very novice level of knowledge, I don’t think we’re going to see anything from the lawsuits. Just my gut from hearing the most recent arguments.

It’s all starting to seem very Twitterish.

Wish I was wrong, but my conviction has changed. I really thought we were heading somewhere great. Sadly, it looks as though I was wrong. I’d guess this stock is $85 a share this time next year. Downvote me to oblivion. It will only reinforce my thoughts on the matter.

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For those of you that think the buyback is the safety net or increasing shareholder value, it’s not.

You can see the shares outstanding has increased over the last 12 months and has increased over the last 24 months.

Current:
202 mil as of 6/30/26

Vs

200 mil as of 6/30/25

Vs

164 mil as of 6/30/24

Shares outstanding is increasing. SBC selling is increasing.

Quick math: Market Cap / Shares Outstanding = Share Price (When the number on bottom goes up, share price goes down.)

This stock is being diluted right in front of our faces, how am I the only one who sees this?

The S&P inclusion is a net benefit, the latest quarter was above expectations.

The leadership team is focused on DAU and more catalysts are coming up in the pipeline.

I am ready to buy more if it goes to the 140s / 130s.

The long term trajectory of the business is still going in the right direction, it's normal to see a high growth company and a social media one be volatile.

Especially since the alpha is where there is uncertainty of future cash flows - growth.

NFA 20% of my port is in RDDT stock no options

Simple question: What is your break even price? Mine is 167, not worried myself.

Looking to hear from everyone else!

I think Reddit should continue to disclose logged in / out users. The fact that are discontinuing it amidst search disruption is a huge mistake.

The market wants clarity and feels that Reddit is / will hide any bad data at all costs.

I say embrace it and show they are making investments into turning traffic into logged in users.

Announce AI deals + partnerships with OpenAI to have a new browser and diversify away from Google.

They need to be more proactive about this. It’s incredible how tone deaf management is at times.

561 shares @ 173.25
TP 205 EOY

There are not many businesses that actually have a strong moat in their own category.

Look at some of the companies the market is willing to value at huge premiums:

Company	Market Cap	Latest Q Revenue	YoY Growth	GAAP Net Margin	Competition
Cloudflare (NET)	$107B	$696M	+36%	-24%	AWS, Akamai, Fastly
Roblox (RBLX)	$27B	$1.5B	+36%	-12%	Fortnite (Epic), Minecraft
Spotify (SPOT)	$103B	€4.78B	+14%	+11%	Apple Music, YouTube Music, Amazon Music
Unity (U)	$20B	$546M	+24%	-4%	Unreal Engine (Epic), Applovin
Snowflake (SNOW)	$112B	$1.39B	+33%	-21%	Databricks, AWS Redshift, Google BigQuery, MSFT Fabric
Reddit (RDDT)	$32B	$805M	+61%	+31%	TikTok, Meta, Google Search/YouTube

Aug. 18, 2026.

I'm not saying these are bad companies. My point is simply: look at what the market is willing to pay for them, then look at Reddit.

Reddit just reported $805M revenue, +61% YoY — its 8th consecutive quarter above 60% growth. Gross margin was 91.3%, net income $253M / 31% margin, adjusted EBITDA $343M / 43% margin, and FCF $261M. It also has $2.8B cash + marketable securities, with no debt showing on the balance sheet.

Meanwhile NET is valued at ~$107B while still GAAP unprofitable. SNOW is ~$112B while growing roughly half as fast as Reddit and still GAAP unprofitable. Spotify is ~$103B growing 14%.

Yet Reddit is sitting at only ~$32B.

And Reddit's moat is something I think people continue to underestimate. It isn't just another social media app. TikTok is short-form video, Meta is influencer business, Google/YouTube is search and video discovery; Reddit is different — its users are discussion-heavy and community-focused, often coming to research, compare, ask questions and hear real human opinions. There is basically no scaled direct competitor offering the same forum/community product with Reddit's reach.

Users are sticky. Content compounds. Advertising is scaling. Data licensing is still very early.

The only company really comparable to Reddit right now is Palantir.

	Palantir (PLTR)	Reddit (RDDT)
Market Cap	~$420B	~$32B
Latest Q Revenue	$1.94B	$805M
Revenue Growth	+92.8%	+61%
Operating Income	$912M	$232M
Gross Margin	~85%	~91%
Core Moat	Enterprise software	Communities + User habits

Palantir is an incredible business, but the market is valuing it at ~$420B — more than 13x Reddit's valuation, while revenue is only 2 times that of Reddit.

And PLTR is still fundamentally a software company. Risk involves AI agents like Claude Cowork could still compete with parts of what enterprise software does.

Reddit is different. Claude can build software. It cannot recreate decades of human communities, discussions and user habits.

If PLTR deserves $420B, RDDT at ~$32B looks extremely cheap.

At market cap of 32B and $160, I think Reddit is a steal and market is mispricing this stock.

Reddit is a Strong Buy (PT $550).

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Added on 08/19/26:

Everyone agrees that Reddit advertsing business is not as matured as Meta.

In 2025, Meta advertising business generated 200B and will be hitting 250B this year (2026).

On the flip side, Reddit advertising revenue is expected to reach 3B+ this year, just assuming Reddit to reach 5% of Meta advertising of 2026, which is 12.5B, with a conservative net margin of 30%, thats makes 3.8B net income, give it or take 20-30PE, equivalent to 78B-114B market cap. But the reality is that advertising net margin is usually 50%+, so a slightly bullish case make Reddit 125-190B market cap.
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What you guys think gona be the new bottom now and why? Im assuming people who bought the dip after earnings drop at 136 - 145 range sold off at the top after sp500 pump. So im thinking we might even go down retest 140's again. I guess sp500 inclusion might have raised the bottom higher now so might be low 150's high 140's. Whats your guys thoughts?

Can we start banning posts talking about her selling shares and SBC. It’s basically the entire sub right now. Including this post and my account, 7 day ban, I’ll fall on the sword first.

Literally 0 substance here lately. 30k shares sold once a month when daily volume is 6m is a drop in the bucket. Find something else to talk about.

Does anyone know the CFO of Reddit? The guy's name is Drew Vollero and he was CFO for Snapchat when they went public. Long story short, he destroyed Snapchat's stock by issuing insane amounts of SBC to insiders and executives.

His biggest trick: reporting SBC as percentage of revenue

He reports SBC as declining "from 27% to 13% of revenue." The absolute dollar amount is increasing. He's using the denominator (revenue growth) to make the numerator (SBC) look like it's shrinking. It's not. It's growing. What happens when Revenue slows? you cannot grow at 60% forever.

Now this guy is running the same playbook at the Reddit that he used at Snapchat. Look at the facts: 90% of the free cash flow generated this quarter went towards NOT stock buybacks. It went towards absorbing stock based compensation and we still ended diluting shareholders. He is framing it was they're reducing the shares outstanding: FALSE. They actually diluted shares.

What's even more concerning is Reddit only spent 1 million on CAPEX. They're not interested in innovating or being aggressive. They just want to maintain status quo and collect insane amounts of stock. We got fooled because we were thinking Reddit is growing revenue by 60% (which it is) but that doesn't mean anything because the end result is it just goes back to compensating the stock packages. I was under the impression by 2030, Reddit would have around 15 billion sitting on the balance sheet. This could be used for acquisitions of other companies, buybacks, dividends. We wont have anywhere near that amount.

The management team make more from SBC than shareholders keep from FCF. The insiders' annual take exceeds our annual return. GRIFT. Someone on here said this is headed towards Snapchat like ending again. IDK if is or not but boy the blueprint looks the same.