Asset icon - trade crypto, stocks, and gold on Pluang
Trade on Pluang
One platform for all markets
Download

Reddit stock cools as AI hype fades, now valued at 20x forward EPS with steady user growth.

Analyst Insights
24 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Reddit, Inc. has seen its stock price retrace after initial excitement over AI and user growth diminished. The company reported a modest 7% year-over-year increase in logged-in users for Q1 2026, with key U.S. user growth under 10%. While Reddit's potential to expand its AI-related opportunities remains a key growth factor, no significant rise in data licensing fees is expected. The stock is now considered more attractively valued at around 20 times forward earnings per share, reflecting more normalized earnings and growth expectations.

More News (RDDT)

Large-cap tech, EV, and healthcare stocks fall amid weak guidance and regulatory concerns last week.

Large-cap tech, EV, and healthcare stocks fall amid weak guidance and regulatory concerns last week.

Last week, large-cap stocks in sectors like technology, electric vehicles, data centers, and healthcare experienced declines due to weak earnings guidance, regulatory worries, rising bond yields, and increased competition. Notable losers included Int...

Market News
Bearish
4 hours ago
Reddit shares drop 6% as Meta tests new Forum app competing with Reddit groups

Reddit shares drop 6% as Meta tests new Forum app competing with Reddit groups

Reddit shares fell about 6% after Meta launched a test app called Forum on Apple's iOS, aiming to compete with Reddit's online discussion groups. Analysts warn this could reduce Reddit's appeal to casual users seeking quick answers, potentially erodi...

Market News
Bearish
2 days ago
Reddit remains a buy despite Google Search changes, with strong revenue and user growth.

Reddit remains a buy despite Google Search changes, with strong revenue and user growth.

Reddit's stock is recommended as a buy despite concerns about Google's Search overhaul announced at I/O 2026. Reddit's AI-powered Search and strong ad revenue growth led to a 69% increase in Q1 FY26 revenue and a 44% rise in average revenue per user ...

Analyst Insights
Bullish
3 days ago
Reddit remains a strong buy despite a 30% drop, driven by solid growth and high profitability.

Reddit remains a strong buy despite a 30% drop, driven by solid growth and high profitability.

Reddit (RDDT) has seen its stock decline 30% year-to-date but remains a compelling buy due to its strong fundamental performance and robust user growth. The platform stands out with active, topic-based discussions that attract valuable users for adve...

Analyst Insights
Bullish
4 days ago
Reddit posts 69% revenue growth with strong margins, plans to double U.S. daily users, maintaining buy rating.

Reddit posts 69% revenue growth with strong margins, plans to double U.S. daily users, maintaining buy rating.

Reddit reported a 69% year-over-year revenue increase and a strong GAAP net margin of 30.8%, driven by a 44% rise in average revenue per user. Management plans to grow revenue by 45% next quarter and aims to double U.S. daily active users through inv...

Analyst Insights
Bullish
4 days ago
banner-footerbanner-footer

Invest & Trade with
#1 Award-Winning Investment Super App