Reddit, Inc. (RDDT): one to watch?

Cheap and profitable, but wait for one more quarter to confirm US user growth isn't stalling before buying.

👀 WATCH Fundamentals96/100

Fell 24% in 9 trading day(s) — now $140.67

Why RDDT dropped

Reddit's Q2 2026 earnings actually beat on revenue, profit, and forward guidance, but the stock cratered 21% because U.S. daily active users ticked down slightly quarter-over-quarter (the first such dip in five quarters) and management admitted limited visibility into how Google's AI search changes affect traffic to Reddit, with no new AI licensing deals announced.

Fwd P/E 14.6Op margin 28.8%Rev growth 61.1%Debt/equity 0.6%Analyst upside 55.1%

How this scored 96/100

✅ Passes all 4 hard checks — profitable, cash-generative, and financially survivable.

✅ Makes money Net profit margin 31.3%

✅ Generates cash Free cash flow $678M

✅ Not drowning in debt Debt/equity 0.6% (limit 200%)

✅ Can pay its bills Current ratio 10.5 (needs 1+)

Bar length shows how much each metric is worth — a 10-point metric is twice as wide as a 5-point one. Hover any row for what it means.

Profitability Does it actually make money? 25/25

Operating margin 28.8% 9/9

Net profit margin 31.3% 8/8

Return on equity 30.7% 8/8

Growth Is it getting bigger, or dying? 25/25

Revenue growth 61.1% 9/9

Earnings growth 177.8% 8/8

Expected profit change 123.9% 8/8

Value Is it cheap right now? 21/25

Forward P/E 14.6 8/10

PEG ratio 1.0 6/8

Analyst target upside 55.1% 6/7

Balance sheet Will it survive? 25/25

Debt / equity 0.6% 10/10

Current ratio 10.5 8/8

Free cash flow $678M 7/7

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Analysis generated by SmartStonks's AI from public fundamentals and news, first flagged 2026-08-03. Research only — not financial advice.