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Upturn AI SWOT - About
Reddit, Inc. (RDDT)
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Upturn Advisory Summary
02/26/2025: RDDT (4-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Above Average Performance
These Stocks/ETFs, based on Upturn Advisory, frequently surpass the market, reflecting reliable and trustworthy advice.
AI Based Fundamental Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
Analysis of Past Performance
Type Stock | Historic Profit 154.17% | Avg. Invested days 45 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  2.0 | Stock Returns Performance  5.0 |
| Profits based on simulation | Last Close 02/26/2025 |
Key Highlights
Company Size Large-Cap Stock | Market Capitalization 19.49B USD | Price to earnings Ratio - | 1Y Target Price 194.15 |
Price to earnings Ratio - | 1Y Target Price 194.15 | ||
Volume (30-day avg) 6324416 | Beta - | 52 Weeks Range 37.35 - 230.41 | Updated Date 03/31/2025 |
52 Weeks Range 37.35 - 230.41 | Updated Date 03/31/2025 | ||
Dividends yield (FY) - | Basic EPS (TTM) -3.33 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Revenue by Geography
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin -37.25% | Operating Margin (TTM) 12.36% |
Management Effectiveness
Return on Assets (TTM) -17.82% | Return on Equity (TTM) -27.12% |
Valuation
Trailing PE - | Forward PE 81.3 | Enterprise Value 17671100430 | Price to Sales(TTM) 14.99 |
Enterprise Value 17671100430 | Price to Sales(TTM) 14.99 | ||
Enterprise Value to Revenue 13.59 | Enterprise Value to EBITDA -54.04 | Shares Outstanding 125532000 | Shares Floating 85281928 |
Shares Outstanding 125532000 | Shares Floating 85281928 | ||
Percent Insiders 18.22 | Percent Institutions 83.44 |
Analyst Ratings
Rating 4.05 | Target Price 76.82 | Buy 5 | Strong Buy 8 |
Buy 5 | Strong Buy 8 | ||
Hold 5 | Sell 1 | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Reddit, Inc.
Company Overview
History and Background
Reddit, Inc. was founded in 2005 by Steve Huffman and Alexis Ohanian. Initially part of Y Combinator, it was acquired by Condu00e9 Nast in 2006. It became independent again in 2011 and has since grown into a major social media platform with diverse communities and content.
Core Business Areas
- Advertising: The primary revenue source for Reddit, generating income through display ads, promoted posts, and other advertising formats targeted to specific subreddits.
- Premium Subscriptions (Reddit Premium): Offers users ad-free browsing, exclusive features, and monthly Reddit Coins to award other users' content.
- Data Licensing: Reddit licenses its data to third parties for research, analysis, and AI training purposes.
Leadership and Structure
The CEO of Reddit, Inc. is Steve Huffman. The company operates with a structured management team overseeing engineering, product development, marketing, and sales. It features a hierarchical structure with various department heads reporting to executive leadership.
Top Products and Market Share
Key Offerings
- Competitors: X,Meta (Facebook, Instagram, Threads),Discord
- Reddit Platform: Reddit is a social news aggregation, content rating, and discussion website. As of 2024, it has over 500 million active users globally. Competitors include X (formerly Twitter), Meta (Facebook, Instagram, Threads), and Discord.
- Competitors: Google Ads,Meta Ads Manager,Amazon Advertising
- Reddit Ads: Advertising platform allowing businesses to promote their products and services to Reddit's user base. Market share in digital advertising is relatively small compared to major players like Google and Meta. Competitors include Google Ads, Meta Ads Manager, and Amazon Advertising.
- Competitors: YouTube Premium,Spotify Premium
- Reddit Premium: Offers ad-free browsing and exclusive features. Has a smaller subscriber base compared to platforms like YouTube Premium or Spotify Premium. Competitors include ad-free subscription options on other platforms.
Market Dynamics
Industry Overview
The social media industry is highly competitive and constantly evolving, driven by technological advancements, changing user preferences, and increasing advertising revenue. Key trends include the growth of short-form video, the rise of influencer marketing, and the increasing importance of data privacy.
Positioning
Reddit is positioned as a community-driven platform with a diverse range of interests and topics. Its competitive advantage lies in its niche communities and user-generated content, fostering strong engagement and loyalty among its users.
Total Addressable Market (TAM)
The global digital advertising market is expected to reach over $800 billion in 2024. Reddit is positioned to capture a portion of this TAM through its advertising platform and data licensing agreements.
Upturn SWOT Analysis
Strengths
- Strong Community Focus
- Diverse Content
- High User Engagement
- Brand Recognition
Weaknesses
- Content Moderation Challenges
- Dependence on User-Generated Content
- Limited Revenue Diversification
- Negative Content Risk
Opportunities
- Expanding Advertising Offerings
- Improving Content Moderation
- Exploring New Revenue Streams (e.g., NFTs)
- International Expansion
Threats
- Increasing Competition
- Changing User Preferences
- Regulatory Scrutiny
- Data Privacy Concerns
Competitors and Market Share
Key Competitors
- META
- X
- SNAP
Competitive Landscape
Reddit's competitive advantage lies in its community-driven platform with diverse niche communities. However, it faces challenges from larger social media platforms with greater resources and established user bases.
Major Acquisitions
Growth Trajectory and Initiatives
Historical Growth: Historical growth data is limited due to the recent IPO.
Future Projections: Analyst projections suggest continued growth in user base and advertising revenue for Reddit, Inc.
Recent Initiatives: Recent initiatives include improvements to the advertising platform and efforts to enhance content moderation policies.
Summary
Reddit demonstrates a strong community focus and engagement, but its reliance on advertising and user-generated content poses challenges. The company's growth potential hinges on expanding advertising, content moderation, and exploring new revenue streams. Increasing competition from larger social media platforms and regulatory scrutiny remain threats. Reddit needs to capitalize on international expansion to broaden its market reach.
Similar Companies
- META
- SNAP
- PINS
- HOOD
Sources and Disclaimers
Data Sources:
- Company Filings
- Market Research Reports
- Analyst Estimates
- Statista
- eMarketer
Disclaimers:
This analysis is based on available information and is not financial advice. Market conditions and company performance are subject to 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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