Reddit reported its 3rd straight quarter of >200% EPS growth (+677%, 7.8x). Its P/E is down to 47.6, and forward P/E is 19 (47.6/2.45). It will report another >200% EPS growth quarter in July.
RDDT's 2026 Q1 EPS of $1.01 has beaten 2027 Q1 EPS expectations of $0.98. Yes, RDDT beat 2 years of analyst expectations at once.
Reddit only has 203M shares outstanding, compared with 4.3B for Netflix and 2.1B for Uber. After a cumulative 20:1 split, its current share price would be $8.3.
Full investment thesis is in my earlier post.
RDDT just blew past expectations: 677% EPS surge, and massive S&P & AI catalysts ahead
byu/tomato232 ininvesting
Posted by tomato232
5 Comments
We don’t need your investment thesis. It’s public data. You’re not a savant
I genuinely don’t get how AI boosts Reddit.
If anything, AI could be and existential threat to Reddit. Value of Reddit comes from original content, valuable communities with real discussion between people that is valuable for training AI.
But Reddit is also getting carpet bombed with AI content and it costs almost nothing to generate AI text. I suspect in less than 3 years, 80% or more of content and comments on Reddit will be AI generated unless they do some kind of strict human verification. We are already seeing AI posts getting AI comments, AI bots commenting at each other and marketing campaigns using this to create illusion of actual reviews, discussions about products.
AI content is neither advertisable nor valuable as people will just stop participating if they think every comment they are responding to or contributing to is generated by AI
Just blew past expectations… 4 days ago?
No I won’t invest in Reddit.
Nice try Steve