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Upturn AI SWOT - About
Reddit, Inc. (RDDT)
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Upturn Advisory Summary
07/03/2025: RDDT (5-star) is a STRONG-BUY. BUY since 13 days. Profits (24.43%). Updated daily EoD!
Upturn Star Rating
Outstanding Performance
These Stocks/ETFs, based on Upturn Advisory, have historically outperformed the market, making them a top-tier choice for investors.
Number of Analysts
26 Analysts rated it
Well-followed company, solid analyst reports, reliable data for confident investing.
1 Year Target Price $147.97
1 Year Target Price $147.97
| 10 | Strong Buy |
| 5 | Buy |
| 10 | Hold |
| 0 | Sell |
| 1 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 216.26% | Avg. Invested days 37 | Today’s Advisory Strong Buy |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 07/03/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 28.98B USD | Price to earnings Ratio 31.47 | 1Y Target Price 147.97 |
Price to earnings Ratio 31.47 | 1Y Target Price 147.97 | ||
Volume (30-day avg) 26 | Beta - | 52 Weeks Range 49.13 - 230.41 | Updated Date 07/4/2025 |
52 Weeks Range 49.13 - 230.41 | Updated Date 07/4/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) 4.99 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 8.07% | Operating Margin (TTM) 1% |
Management Effectiveness
Return on Assets (TTM) 0.92% | Return on Equity (TTM) 5.77% |
Valuation
Trailing PE 31.47 | Forward PE 126.58 | Enterprise Value 27050679701 | Price to Sales(TTM) 19.99 |
Enterprise Value 27050679701 | Price to Sales(TTM) 19.99 | ||
Enterprise Value to Revenue 18.66 | Enterprise Value to EBITDA 558.29 | Shares Outstanding 129546000 | Shares Floating 88844829 |
Shares Outstanding 129546000 | Shares Floating 88844829 | ||
Percent Insiders 6.89 | Percent Institutions 85.1 |
Upturn AI SWOT
Reddit, Inc.
Company Overview
History and Background
Reddit was founded in 2005 by Steve Huffman and Alexis Ohanian. Originally part of Y Combinator, it grew into a massive online community known for its diverse range of user-generated content and discussion forums. Key milestones include its acquisition by Condu00e9 Nast in 2006, its spin-off as an independent company, and its recent IPO in 2024.
Core Business Areas
- Advertising: Reddit generates revenue primarily through advertising. Brands pay to promote their products and services to Reddit's user base through various ad formats, including promoted posts and display ads.
- Data Licensing: Reddit licenses its data to third parties for various purposes, including research, analysis, and AI model training.
- Premium Subscriptions: Reddit offers premium subscriptions, such as Reddit Premium, which provide users with an ad-free experience and other exclusive features.
Leadership and Structure
The CEO of Reddit, Inc. is Steve Huffman. The company has a traditional corporate structure with various departments overseeing engineering, product development, marketing, sales, and finance.
Top Products and Market Share
Key Offerings
- Reddit Platform: Reddit is a social news aggregation, web content rating, and discussion website. As of Q1 2024, Reddit reported an average of 82.7 million daily active unique users globally. Competitors include Meta (Facebook, Instagram), X (formerly Twitter), and Discord.
- Reddit Ads: Reddit Ads is the platform through which advertisers promote their products and services to Reddit users. Advertising revenue for 2023 was $804 million. Competitors include Google Ads, Meta Ads Manager, and X Ads.
- Data API: Reddit's Data API allows developers to access and utilize Reddit's data for various applications. Revenue is generated through licensing agreements. Competitors include Similarweb, Meltwater and other web scraping and data aggregation services.
Market Dynamics
Industry Overview
The industry consists of social media platforms, online forums, and content aggregation websites. It is characterized by intense competition for user attention and advertising revenue. The industry is driven by technological innovation, evolving user preferences, and shifting advertising trends.
Positioning
Reddit is positioned as a community-driven platform with a focus on niche interests and discussions. Its competitive advantage lies in its highly engaged user base, diverse content, and strong community culture.
Total Addressable Market (TAM)
The total addressable market for digital advertising is expected to reach $876 billion in 2024. Reddit, Inc. is positioned to capture a portion of this market through its advertising offerings. The TAM for data licensing is harder to accurately estimate but is expected to be multi-billion and growing rapidly.
Upturn SWOT Analysis
Strengths
- Large and Engaged User Base
- Strong Community Culture
- Diverse Range of Content
- Data Advantage for AI Training
- Established Brand Recognition
Weaknesses
- Content Moderation Challenges
- Negative Content Potential
- Dependence on User-Generated Content
- Competition from Larger Platforms
- Relatively small advertising revenue when compared to competitors
Opportunities
- Expansion of Advertising Offerings
- Growth in Data Licensing Revenue
- Partnerships with AI Companies
- International Expansion
- New Community Features
Threats
- Increased Competition
- Changing User Preferences
- Privacy Concerns
- Regulatory Scrutiny
- Economic Downturn Impacting Advertising Spend
Competitors and Market Share
Key Competitors
- META
- X
- PINS
Competitive Landscape
Reddit faces intense competition from larger social media platforms. Its competitive advantage lies in its strong community culture and diverse content.
Growth Trajectory and Initiatives
Historical Growth: Reddit has experienced significant user growth and revenue growth over the past decade.
Future Projections: Analysts project continued revenue growth driven by advertising and data licensing. User growth is expected to continue but at a slower pace.
Recent Initiatives: Recent initiatives include expanding advertising offerings, developing new community features, and investing in AI and machine learning.
Summary
Reddit is a popular platform with a strong community, but its financial performance is still developing. Its strengths lie in its user base and data, while its weaknesses include content moderation and competition. The company's future depends on its ability to monetize its platform and address regulatory challenges.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Reddit, Inc. SEC Filings, Analyst Reports, Statista, Company Investor Relations
Disclaimers:
This analysis is for informational purposes only and should not be considered financial advice. Market conditions and company performance may change.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Reddit, Inc.
Exchange NYSE | Headquaters San Francisco, CA, United States | ||
IPO Launch date 2024-03-21 | Co-Founder, CEO, President & Director Mr. Steven Ladd Huffman | ||
Sector Communication Services | Industry Internet Content & Information | Full time employees 2233 | Website https://redditinc.com |
Full time employees 2233 | Website https://redditinc.com | ||
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
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