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

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.