Reddit Stock Performance
| RDDT Stock | 141.65 0.00 0.00% |
The company holds a Beta of 0.7, which implies possible diversification benefits within a given portfolio. As returns on the market increase, Reddit's returns are expected to increase less than the market. However, during the bear market, the loss of holding Reddit is expected to be smaller as well. At this point, Reddit has a negative expected return of -0.54%. Please make sure to check Reddit's coefficient of variation, total risk alpha, as well as the relationship between the Total Risk Alpha and accumulation distribution , to decide if Reddit performance from the past will be repeated at some point in the near future.
Risk-Adjusted Performance
Weakest
Weak | Strong |
Over the last 90 days Reddit has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of weak performance in the last few months, the Stock's fundamental indicators remain comparatively stable which may send shares a bit higher in March 2026. The newest uproar may also be a sign of mid-term up-swing for the firm private investors. ...more
Actual Historical Performance (%)
One Day Return (7.38) | Five Day Return (22.28) | Year To Date Return (42.16) | Ten Year Return 177.36 | All Time Return 177.36 |
1 | Disposition of 18750 shares by Benjamin Lee of Reddit at 240.0 subject to Rule 16b-3 | 12/18/2025 |
2 | Reddit Stock Trades Up, Here Is Why | 01/13/2026 |
3 | Disposition of 857 shares by Jennifer Wong of Reddit at 228.47 subject to Rule 16b-3 | 01/20/2026 |
4 | Why Reddit Shares Are Plunging Today | 01/27/2026 |
5 | Reddit Valuation Check After Analyst Concerns And AI Data Competition Hit Shares | 01/30/2026 |
6 | Invoca Reddit Ads Link Seeks Clearer Outcomes For Undervalued RDDT | 02/03/2026 |
7 | Reddit Q4 Earnings What To Expect | 02/04/2026 |
8 | Reddit Beats Expectations in Strong Q4 CY2025 | 02/05/2026 |
9 | Jim Cramer Here are 2 reasons why social media stock Reddit is a buy | 02/06/2026 |
| Begin Period Cash Flow | 562.1 M | |
| Total Cashflows From Investing Activities | -218.9 M |
Reddit Relative Risk vs. Return Landscape
If you would invest 20,821 in Reddit on November 11, 2025 and sell it today you would lose (6,647) from holding Reddit or give up 31.92% of portfolio value over 90 days. Reddit is currently does not generate positive expected returns and assumes 3.863% risk (volatility on return distribution) over the 90 days horizon. In different words, 34% of stocks are less volatile than Reddit, and 99% of all traded equity instruments are projected to make higher returns than the company over the 90 days investment horizon. Expected Return |
| Risk |
Reddit Target Price Odds to finish over Current Price
The tendency of Reddit Stock price to converge on an average value over time is a known aspect in finance that investors have used since the beginning of the stock market for forecasting. However, many studies suggest that some traded equity instruments are consistently mispriced before traders' demand and supply correct the spread. One possible conclusion to this anomaly is that these stocks have additional risk, for which investors demand compensation in the form of extra returns.
| Current Price | Horizon | Target Price | Odds to move above the current price in 90 days |
| 141.65 | 90 days | 141.65 | close to 99 |
Based on a normal probability distribution, the odds of Reddit to move above the current price in 90 days from now is close to 99 (This Reddit probability density function shows the probability of Reddit Stock to fall within a particular range of prices over 90 days) .
Reddit Price Density |
| Price |
Predictive Modules for Reddit
There are currently many different techniques concerning forecasting the market as a whole, as well as predicting future values of individual securities such as Reddit. Regardless of method or technology, however, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.Sophisticated investors, who have witnessed many market ups and downs, anticipate that the market will even out over time. This tendency of Reddit's price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
Reddit Risk Indicators
For the most part, the last 10-20 years have been a very volatile time for the stock market. Reddit is not an exception. The market had few large corrections towards the Reddit's value, including both sudden drops in prices as well as massive rallies. These swings have made and broken many portfolios. An investor can limit the violent swings in their portfolio by implementing a hedging strategy designed to limit downside losses. If you hold Reddit, one way to have your portfolio be protected is to always look up for changing volatility and market elasticity of Reddit within the framework of very fundamental risk indicators.α | Alpha over Dow Jones | -0.56 | |
β | Beta against Dow Jones | 0.70 | |
σ | Overall volatility | 26.55 | |
Ir | Information ratio | -0.14 |
Reddit Alerts and Suggestions
In today's market, stock alerts give investors the competitive edge they need to time the market and increase returns. Checking the ongoing alerts of Reddit for significant developments is a great way to find new opportunities for your next move. Suggestions and notifications for Reddit can help investors quickly react to important events or material changes in technical or fundamental conditions and significant headlines that can affect investment decisions.| Reddit generated a negative expected return over the last 90 days | |
| Reddit has high historical volatility and very poor performance | |
| Reddit is unlikely to experience financial distress in the next 2 years | |
| Reddit has a strong financial position based on the latest SEC filings | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from cnbc.com: Jim Cramer Here are 2 reasons why social media stock Reddit is a buy |
Reddit Price Density Drivers
Market volatility will typically increase when nervous long traders begin to feel the short-sellers pressure to drive the market lower. The future price of Reddit Stock often depends not only on the future outlook of the current and potential Reddit's investors but also on the ongoing dynamics between investors with different trading styles. Because the market risk indicators may have small false signals, it is better to identify suitable times to hedge a portfolio using different long/short signals. Reddit's indicators that are reflective of the short sentiment are summarized in the table below.
| Common Stock Shares Outstanding | 202.1 M | |
| Cash And Short Term Investments | 2.5 B |
Reddit Fundamentals Growth
Reddit Stock prices reflect investors' perceptions of the future prospects and financial health of Reddit, and Reddit fundamentals are critical determinants of its market performance. Overall, investors pay close attention to revenue and earnings growth, profit margins, and debt levels. These fundamentals can have a significant impact on Reddit Stock performance.
| Return On Equity | 0.15 | ||||
| Return On Asset | 0.0651 | ||||
| Profit Margin | 0.18 % | ||||
| Operating Margin | 0.32 % | ||||
| Current Valuation | 24.26 B | ||||
| Shares Outstanding | 139.65 M | ||||
| Price To Book | 9.12 X | ||||
| Price To Sales | 14.03 X | ||||
| Revenue | 2.2 B | ||||
| Gross Profit | 1.74 B | ||||
| EBITDA | 457.93 M | ||||
| Net Income | 529.72 M | ||||
| Total Debt | 23.21 M | ||||
| Book Value Per Share | 15.42 X | ||||
| Cash Flow From Operations | 690.88 M | ||||
| Earnings Per Share | 2.61 X | ||||
| Market Capitalization | 26.71 B | ||||
| Total Asset | 3.24 B | ||||
| Retained Earnings | (671.12 M) | ||||
| Working Capital | 2.05 B | ||||
About Reddit Performance
Assessing Reddit's fundamental ratios provides investors with valuable insights into Reddit's financial health and overall profitability. This information is crucial for making informed investment decisions. A high ROA would indicate that the Reddit is effectively leveraging its assets and equity to generate significant profits, making it an appealing investment. Conversely, low Return on Assets could signal underlying management issues in assets and equity, indicating a necessity for operational refinements. Please also refer to our technical analysis and fundamental analysis pages.
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.17 | |
| Return On Capital Employed | 0.15 | 0.16 | |
| Return On Assets | 0.16 | 0.17 | |
| Return On Equity | 0.18 | 0.19 |
Things to note about Reddit performance evaluation
Checking the ongoing alerts about Reddit for important developments is a great way to find new opportunities for your next move. Stock alerts and notifications screener for Reddit help investors to be notified of important events, changes in technical or fundamental conditions, and significant headlines that can affect investment decisions.| Reddit generated a negative expected return over the last 90 days | |
| Reddit has high historical volatility and very poor performance | |
| Reddit is unlikely to experience financial distress in the next 2 years | |
| Reddit has a strong financial position based on the latest SEC filings | |
| Over 99.0% of the company shares are owned by institutional investors | |
| Latest headline from cnbc.com: Jim Cramer Here are 2 reasons why social media stock Reddit is a buy |
- Analyzing Reddit's financial statements, including its income statement, balance sheet, and cash flow statement, helps in understanding its overall financial health and growth potential.
- Getting a closer look at valuation ratios like price-to-earnings (P/E) ratio, price-to-sales (P/S) ratio, and price-to-book (P/B) ratio help in understanding whether Reddit's stock is overvalued or undervalued compared to its peers.
- Examining Reddit's industry or sector and how it is performing can give you an idea of its growth potential and how it is positioned relative to its competitors.
- Evaluating Reddit's management team can have a significant impact on its success or failure. Reviewing the track record and experience of Reddit's management team can help you assess the Company's leadership.
- Pay attention to analyst opinions and ratings of Reddit's stock. These opinions can provide insight into Reddit's potential for growth and whether the stock is currently undervalued or overvalued.
Additional Tools for Reddit Stock Analysis
When running Reddit's price analysis, check to measure Reddit's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Reddit is operating at the current time. Most of Reddit's value examination focuses on studying past and present price action to predict the probability of Reddit's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Reddit's price. Additionally, you may evaluate how the addition of Reddit to your portfolios can decrease your overall portfolio volatility.