Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

Reddit, Inc.

Сильный индекс, без изменений. Быки крепко уверены в своих позициях.

Strong index, flat. The bulls are very confident in their positions.

Сильный индекс, без изменений. Рынок не поддерживает быков.

Strong index, flat. The market does not support the bulls.

Сильный индекс, без изменений. Отток средств из лонгов на высоком уровне.

Strong index, flat. Outflow of funds from longs at a high level.

Key Points
Pinterest maintains a unique position as a visual discovery platform with a focus on shopping and user inspiration.
Reddit offers explosive growth potential by leveraging its community data for artificial intelligence training and content licensing.
Which social media innovator is the best fit for your portfolio?
Social media has shifted from simple status updates to a complex landscape of visual discovery and community intelligence. Choosing between Pinterest (NYSE:PINS) and Reddit (NYSE:RDDT) requires looking at very different user behaviors.
Pinterest focuses on helping users find inspiration for shopping and DIY projects through its visual search platform. Reddit operates as a massive network of niche communities where users discuss interests and share knowledge. Both companies are scaling their advertising models, making them interesting competitors for your attention in 2026.
The case for Pinterest
Pinterest operates a visual search platform with over 640 million monthly active users. It generates nearly all revenue from advertising, with a high concentration in the retail and consumer packaged goods verticals. In its latest annual report, the company emphasized that commercial content from brands and retailers is central to its platform strategy.
In the landscape of investing in social media stocks, Pinterest relies heavily on its ability to attract advertisers. In FY 2025, revenue reached nearly $4.2 billion, reflecting a growth rate of approximately 15.8% year over year. The company reported a net income of close to $416.9 million, resulting in a net margin of roughly 9.9%.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.1x. This ratio, which measures a company's total debt against its shareholder equity, suggests a conservative use of borrowed funds. Free cash flow, the cash left over after paying for operations and capital equipment, reached roughly $1.3 billion. Note that stock-based compensation represented roughly 68.6% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
The case for Reddit
Reddit provides a platform for millions of active communities to share posts and comments. The company is diversifying its revenue by licensing its vast amounts of conversational data for machine learning and artificial intelligence training. However, it still relies on third-party advertising for approximately 91% to 94% of its annual revenue, which is currently concentrated among a small number of top advertisers.
In FY 2025, revenue reached approximately $2.2 billion, which was an increase of nearly 69.4% over the previous year. Reddit achieved a net income of roughly $529.7 million, a significant swing from previous losses. This performance represents a healthy net margin of about 24.1% for the period.
As of December 2025, the company reported a debt-to-equity ratio of 0.0x. Its current ratio, which shows how easily a company can pay its short-term bills with its short-term assets, was roughly 11.6x. Free cash flow was approximately $684.2 million. Note that stock-based compensation represented roughly 49.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the cash flow statement.
Risk profile comparison
Pinterest faces the challenge of maintaining user engagement among younger demographics like Gen Z. The company must also compete for advertising dollars against massive platforms like Meta Platforms, Alphabet, and Amazon. Furthermore, Pinterest is navigating a restructuring plan to prioritize artificial intelligence adoption, which carries execution risks including potential disruptions to operations.
Reddit relies heavily on a small group of top advertisers, and losing any of them could harm its financial results. The platform also depends on volunteer moderators to manage its thousands of active communities, and their disengagement could lead to platform instability. Additionally, Reddit operates on cloud infrastructure provided by Amazon and Alphabet, making it vulnerable to any service disruptions or pricing changes from these providers.
Valuation comparison
Pinterest appears more attractively valued on an earnings basis, while Reddit commands a significant premium due to its rapid revenue growth trajectory.
Metric
Pinterest
Reddit
Forward P/E
11.1x
29.1x
P/S ratio
2.8x
10.9x
Which stock would I buy in 2026?
Pinterest has grown into a mature visual discovery platform, posting respectable user and revenue growth. Its users are often using its platform with strong purchase intent, which arguably makes browsing sessions easier to convert into sales that pinterest can earn a piece of. Users conduct more than 80 billion searches per month, more than half of which are commercial. But the company faces a make-or-break moment as it restructures its business to go all-in on artificial intelligence. Last month, it unveiled Visual Search Ads, an ad performance feature that harnesses the power of visual search. And last week, it announced a new CFO, James Dibbo, formerly of Amazon. But employing new technology and onboarding new management involves time, cost, and uncertainty -- something for current or prospective investors to monitor.
Reddit trounces Pinterest in terms of recent revenue growth and is now solidly profitable, though its free cash flow in fiscal 2025 lags Pinterest's. It's also going all-in on AI, but in a different way. Reddit is licensing its vast archive of human conversations to AI companies, which could prove an incalculable advantage and could also make up for its advertising segment customer concentration risk.
Reddit is a bet on growth and perhaps a side-door play on artificial intelligence development and adoption, but you'll have to pay a bit more of a premium to own the stock. Given its recent growth performance, it's likely to be worth the squeeze, but it’s unlikely to be a smooth ride higher. Pinterest may very well be engineering a turnaround while trading at a bargain, but investors will have to remain patient and watchful of its progress over the next few years.
Should you buy stock in Pinterest right now?
Before you buy stock in Pinterest, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Pinterest wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $391,581!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,780!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of October 17, 2026.
Sarah Sidlow has positions in Alphabet, Meta Platforms, and Pinterest. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Pinterest, and Reddit. The Motley Fool has a disclosure policy.

Competing for Eyeballs: Can Pinterest Stage a Comeback or Will Reddit Run Away With the AI Win?

Alphabet GOOGL is benefiting from accelerating artificial intelligence (AI) adoption across Search, Google Cloud, YouTube, and its Gemini ecosystem, strengthening its competitive position against Meta Platforms META and Reddit RDDT in the digital advertising market. In the second quarter of 2026, Search and Other revenues increased 17% year over year, while YouTube advertising revenues grew 13%. Google Cloud revenues surged 82% year over year, aided by strong demand for AI infrastructure and AI solutions.
Gemini remains a key growth catalyst. AI Mode surpassed 1 billion monthly active users, while the Gemini app reached 950 million monthly active users, with daily active users tripling over the past year. More than 9 million developers are building monthly with Google’s models, while model APIs are processing roughly 22 billion tokens per minute, up from 16 billion in the prior quarter.
GOOGL is also strengthening advertising monetization through deeper Gemini integration. Gemini improved query understanding and drove a 20% improvement in showing highly relevant shopping ads. Advertisers using AI-powered campaigns such as AI Max or Performance Max are generating an average of 15% more conversions or value on Search at a similar return on ad spend.
Google Cloud’s AI momentum is expanding rapidly. Cloud backlog reached $514 billion, while nearly 90% of Fortune 100 companies are using Gemini Enterprise. This broad-based AI adoption across consumer, advertising, and enterprise markets should continue to support GOOGL’s growth prospects and strengthen its competitive standing against Meta Platforms and Reddit.
Alphabet’s accelerating AI adoption across Search, advertising and Cloud, along with expanding Gemini usage, provides a solid foundation for sustained growth. Continued AI-led monetization and enterprise adoption are expected to strengthen GOOGL’s prospects against META and RDDT.
How Competitors Fare Against GOOGL
Despite Alphabet’s expanding portfolio, the company faces stiff competition from Reddit and Meta Platforms. Both companies are expanding their footprint in the rapidly growing digital ad market.
Reddit Max is emerging as a key AI-driven growth catalyst. The launch and rapid adoption of Reddit Max, an AI-driven suite for ad automation and optimization, has delivered significant results. Advertiser usage of Max increased by more than 60% in the second quarter of 2026 from the first quarter of 2026, and revenues from Max campaigns increased by more than 150%. Features like tailored creatives and dynamic product ads are helping brands achieve better outcomes, such as Lenovo’s 40% higher purchase value with Max campaigns compared to standard campaigns.
Meta Platforms is benefiting from its strategic investments in artificial intelligence, which are driving significant improvements in ad engagement and business performance. In the second quarter of 2026, the deployment of Meta Generative Recommender and other advanced models led to an 8.3% increase in ad clicks and a 15.7% uplift in conversions on Facebook. More than 9 million small businesses now use at least one of META’s AI-powered ad creative tools. Its Advantage+ AI-powered advertising solutions also surpassed a $75 billion annual revenue run rate in the quarter, highlighting growing advertiser adoption.
GOOGL’s Share Price Performance, Valuation & Estimates
Alphabet shares have risen 9.5% year to date, underperforming the broader Zacks Computer and Technology sector’s growth of 22.6%.
GOOGL Stock Performance
GOOGL stock is trading at a premium, with a forward 12-month price/sales of 8.11X compared with the broader Computer and Technology sector’s 6.22X. Alphabet has a Value Score of D.
GOOGL Valuation
The Zacks Consensus Estimate for 2026 earnings is pegged at $20.51 per share, which has increased by a penny over the past 30 days. This suggests 89.73% growth from 2025’s reported figure.
Alphabet Inc. Price and Consensus
Alphabet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

GOOGL's Prospects Ride on AI Initiatives: Can It Beat RDDT and META?

Meta Platforms META is benefiting from its strategic investments in artificial intelligence, which are driving significant improvements in ad engagement and business performance. The company’s focus on integrating AI into its platforms — Facebook, WhatsApp, Instagram, Messenger, and Threads — is driving user as well as advertising engagement. In the second quarter of 2026, Family of Apps ad revenues increased 27% year over year to $59.4 billion. Ad impressions rose 14%, while the average price per ad increased 12%, partly reflecting improved ad performance.
AI-powered recommendation and ranking systems are strengthening engagement across META’s platforms. Instagram time spent grew double digits year over year, while Facebook video time spent increased 9% globally. Meta Platforms is using large language models to better understand content and user preferences, enabling more personalized recommendations across Feed and Reels.
In the second quarter of 2026, the deployment of Meta Generative Recommender and other advanced models led to an 8.3% increase in ad clicks and a 15.7% uplift in conversions on Facebook. More than 9 million small businesses now use at least one of Meta’s AI-powered ad creative tools. Its Advantage+ AI-powered advertising solutions also surpassed a $75 billion annual revenue run rate in the quarter, highlighting growing advertiser adoption.
Meta Platforms expects continued gains from AI-powered recommendations and advertising optimization. With strong user engagement, expanding AI capabilities, and a massive advertiser base, Meta Platforms appears well positioned to maintain its advertising momentum. For the third quarter of 2026, the company expects revenues between $61 billion and $64 billion.
How Competitors Fare Against META
Despite Meta Platforms’ expanding portfolio, the company faces stiff competition from Reddit RDDT and Snap SNAP. Both companies are expanding their footprint in the AI space.
Reddit Max is emerging as a key AI-driven growth catalyst. The launch and rapid adoption of Reddit Max, an AI-driven suite for ad automation and optimization, has delivered significant results. Advertiser usage of Max grew by more than 60% in the second quarter of 2026 from the first quarter of 2026, and revenues from Max campaigns increased by more than 150%. Features like tailored creatives and dynamic product ads are helping brands achieve better outcomes, such as Lenovo’s 40% higher purchase value with Max campaigns compared to standard campaigns.
Snap’s flagship product, Snapchat, reached 971 million monthly active users and 493 million daily active users in the second quarter of 2026, driven by continued adoption of Augmented Reality Lenses, Spotlight and AI-powered features. Key growth drivers include its AI-powered Smart Campaign Solutions, AI Sponsored Snaps, Sponsored Snaps and Dynamic Product Ads.
META’s shares have rallied 13.8% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s return of 22.5%.
META Stock Performance
META shares are overvalued, with a forward 12-month Price/Sales of 8.36X compared with the Internet Software industry’s 5.52X. META has a Value Score of C.
The Zacks Consensus Estimate for 2026 earnings is pegged at $31.38 per share, which has decreased 1.07% over the past 30 days. This suggests 33.59% year-over-year growth.
Meta Platforms, Inc. Price and Consensus
Meta Platforms currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
This article originally published on Zacks Investment Research (zacks.com).

Meta Platforms Boosts Ad Engagement With AI: More Upside Ahead?

Key Points
Reddit turned highly profitable in 2025 while expanding its high-margin data licensing business for artificial intelligence training.
The Trade Desk remains a dominant force in programmatic advertising, maintaining steady double-digit growth and healthy free cash flow.
Which of these high-growth digital advertising contenders is the better fit for your portfolio today?
Digital advertising is evolving as platforms compete for limited marketing budgets. Choosing between Reddit (NYSE:RDDT) and The Trade Desk (NASDAQ:TTD) requires weighing community-driven content against the power of programmatic ad buying.
Reddit offers a unique platform built on user-generated communities, while The Trade Desk operates an independent demand-side platform for buying digital ads. Both companies are navigating a shift toward data-driven targeting and privacy changes among communication stocks. This comparison looks at their growth trajectories and valuations to see which holds the advantage for long-term investors.
The case for Reddit
Reddit operates a massive network of user-governed communities where people discuss everything from finance to hobbies. The company sells advertising space across its platform, which accounted for approximately 94% of total revenue in 2025. It also relies on licensing its conversational data to technology firms for training artificial intelligence models.
While still in its early stages of monetization, these licensing deals provide a high-margin supplement to its core advertising business. According to its latest annual report for the 2025 fiscal year (FY), revenue reached $2.2 billion, representing significant growth of 69.4% compared to the prior year. The company reported net income of $529.7 million, a major improvement from the net loss reported in the prior fiscal year.
As of its December 2025 balance sheet, the debt-to-equity ratio was zero, meaning it has no total debt relative to shareholder equity. The current ratio, which measures the ability to pay short-term debts, is 11.6x. Free cash flow reached $684.2 million, though stock-based compensation (SBC) represented 49.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense.
The case for The Trade Desk
The Trade Desk provides a self-service platform that helps advertisers buy digital ad space across the open internet, including connected TV. It serves ad agencies through master services agreements, but customer concentration is a notable factor. Two holding companies each represented more than 10% of gross billings in 2025, which adds a layer of risk to the business.
In its latest annual report for FY 2025, revenue reached $2.9 billion, a growth rate of 18.5% over the previous year. The company reported a net income of $443.3 million, resulting in a net margin of 15.3%.
As of its December 2025 balance sheet, the debt-to-equity ratio was 0.2x, representing the amount of total debt compared to shareholder equity. The current ratio is 1.6x, meaning assets cover short-term liabilities. Free cash flow was $795.7 million, but stock-based compensation represented 49.4% of operating cash flow.
Risk profile comparison
Reddit faces significant risks regarding user engagement and community moderation. If users or moderators become dissatisfied with platform changes, declines in activity could directly harm revenue. Furthermore, the company relies on external ecosystems like Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG) for users to access the Reddit app.
The Trade Desk lacks exclusive, long-term contracts, allowing clients to shift their spending to rivals with short notice. It also depends on access to ad inventory from suppliers that may also be competitors, such as Amazon (NASDAQ:AMZN). Finally, evolving global privacy regulations and the removal of tracking identifiers pose substantial operational burdens.
Valuation comparison
Reddit looks more expensive by its Forward P/E, which compares price to future earnings estimates, and P/S ratio, while The Trade Desk has the advantage in both valuation measures.
Metric
Reddit
Trade Desk
Forward P/E
19.5x
10.9x
P/S ratio
10.5x
2.0x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
Reddit and The Trade Desk both rely on digital advertising to pay the bills. The Trade Desk's platform is all about facilitating digital ad campaigns, but despite this, Reddit is the stock to buy in 2026.
The arrival of artificial intelligence is changing the digital landscape. The potent AI capabilities of larger advertising rivals, such as Amazon and Alphabet-owned Google, give them an advantage that The Trade Desk is hard-pressed to match.
In fact, through the first half of 2026, The Trade Desk's $1.4 billion in revenue represents just a 7% year-over-year increase, a significant slowdown from 2025's 18.5% growth rate. Worse, the company expects Q3 sales to drop year over year to $650 million compared to $739 million in 2025. This suggests its business is in trouble.
Meanwhile, Reddit's core platform is about human connection and knowledge sharing. In an ever-expanding sea of AI-generated automation, the human element on Reddit helped it increase daily active unique users by 18% year-over-year to 130.3 million. As the user base grows, it attracts more advertisers. This key component makes Reddit an appealing long-term investment, especially since its user-generated content is not easily replicated by rivals.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $383,680!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,382,954!*
Now, it’s worth noting Stock Advisor’s total average return is 937% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 26, 2026.
Robert Izquierdo has positions in Alphabet, Amazon, Apple, Reddit, and The Trade Desk. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Reddit, and The Trade Desk. The Motley Fool has a disclosure policy.

Reddit vs. The Trade Desk: Here's the Better Media Stock to Buy in 2026

Key Points
The executive traded 17,308 shares for a total value of ~$2.8 million at $160.11 per share.
The transaction size represented 5% of the total indirect stake held before the filing.
The executive realized liquidity through an option exercise and same-day sale while maintaining a static total holding of ~343,000 shares.
Steve Ladd Huffman, Chief Executive Officer of Reddit, Inc. (NYSE:RDDT), sold 17,308 shares of Class A Common Stock on September 15, 2026, as disclosed in a recent SEC Form 4 filing.
Transaction summary
Transaction value
~$2.8 million
Shares sold (indirectly held)
17,308
Post-transaction shares (indirectly held)
343,329
Post-transaction value
~$54.81 million
Transaction value based on SEC Form 4 weighted average sale price ($160.11); post-transaction value based on September 15, 2026 market close ($159.63).
Key questions
How was the transaction structured and what was the execution price?
The sale was a routine execution under a Rule 10b5-1 trading plan adopted on May 20, 2026, involving the exercise of 17,308 options at $25.29 per share followed by an immediate sale at a weighted average price of $160.11 per share.
Which entities are used to maintain the executive's equity position?
Equity holdings are managed through indirect entities, including 336,432 shares held by The XYZ Revocable Trust and 6,897 shares held by a grantor retained annuity trust.
How does this transaction affect the insider's long-term stake in the company?
The executive's total equity position remained unchanged at 343,329 shares because the disposition was offset by the acquisition of new shares through the exercise of vested options; additionally, the executive holds ~1.0 million derivative securities held indirectly.
What is the current business focus and market context for the company?
The company operates an internet-based platform for diverse online communities organized by shared passions, and its stock was priced at $152.83 as of the September 17, 2026 market close following a one-year return of -39% as of the transaction date.
Company Overview
Share Price (as of market close 2026-09-17)
$152.83
Market Capitalization
$29.1 billion
Revenue (TTM)
$2.8 billion
Net Income (TTM)
$871.1 million
Company Snapshot
Reddit operates a user-generated content platform that generates revenue primarily through advertising, premium subscription services, and API licensing arrangements with enterprise customers seeking access to community data and insights.
The company monetizes its engaged user base through targeted advertising placements within community feeds, sponsored content opportunities, and subscription-based premium features that enhance user experience across its platform.
Reddit serves a diverse global audience ranging from individual consumers seeking community engagement to enterprise clients including technology companies, financial institutions, and research organizations requiring access to real-time community discussions and sentiment data.
Reddit maintains a substantial scale with $2.8 billion in TTM revenue with net income of $871.1 million, reflecting strong operational profitability. The platform's competitive advantage derives from its unique community-driven architecture and the authentic, unfiltered nature of user-generated discussions, which create valuable datasets for both advertisers and enterprise customers. Reddit benefits from monetizing its highly engaged user communities through diversified revenue streams.
What this transaction means for investors
CEO Steve Huffman's September 15 sale of Reddit stock occurred after the share price had fallen 39% over the past 12 months through his transaction date. However, his disposition was a non-discretionary transaction executed as part of a pre-established Rule 10b5-1 plan. Such plans allow insiders to sell shares at predetermined times to avoid concerns of trading on non-public information.
Post-sale, Huffman retained a sizable equity stake, including more than one million stock options. This ensures his continued alignment with shareholder interests.
Although Reddit shares have declined over the past year, the company is doing well. In the second quarter, Reddit achieved $804.9 million in Q2 sales, which represents the eighth consecutive quarter of more than 60% year-over-year revenue growth. This massive increase was due to daily active users rising 18% year over year to 130.3 million. More users means more advertising can be put in front of those people.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $386,781!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,379,943!*
Now, it’s worth noting Stock Advisor’s total average return is 936% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 26, 2026.
Robert Izquierdo has positions in Reddit. The Motley Fool has positions in and recommends Reddit. The Motley Fool has a disclosure policy.

Reddit CEO Dumps Over 17,000 Shares for $2.8 Million After the Stock's 39% One-Year Decline

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Datadog Inc (Symbol: DDOG), where a total volume of 20,328 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 55.9% of DDOG's average daily trading volume over the past month, of 3.6 million shares. Especially high volume was seen for the $300 strike call option expiring October 16, 2026, with 902 contracts trading so far today, representing approximately 90,200 underlying shares of DDOG. Below is a chart showing DDOG's trailing twelve month trading history, with the $300 strike highlighted in orange:
Reddit Inc (Symbol: RDDT) options are showing a volume of 25,724 contracts thus far today. That number of contracts represents approximately 2.6 million underlying shares, working out to a sizeable 54.3% of RDDT's average daily trading volume over the past month, of 4.7 million shares. Particularly high volume was seen for the $143 strike put option expiring October 02, 2026, with 2,710 contracts trading so far today, representing approximately 271,000 underlying shares of RDDT. Below is a chart showing RDDT's trailing twelve month trading history, with the $143 strike highlighted in orange:
And Marvell Technology Inc (Symbol: MRVL) options are showing a volume of 98,997 contracts thus far today. That number of contracts represents approximately 9.9 million underlying shares, working out to a sizeable 46% of MRVL's average daily trading volume over the past month, of 21.5 million shares. Especially high volume was seen for the $265 strike call option expiring September 25, 2026, with 7,756 contracts trading so far today, representing approximately 775,600 underlying shares of MRVL. Below is a chart showing MRVL's trailing twelve month trading history, with the $265 strike highlighted in orange:
For the various different available expirations for DDOG options, RDDT options, or MRVL options, visit StockOptionsChannel.com.
Further DDOG Research:

Notable Friday Option Activity: DDOG, RDDT, MRVL

Key Points
The stocks listed here trade at incredibly low earnings multiples.
Investors have question marks about their futures, but they are still solid businesses.
Investors looking for cheap stocks to buy before the end of 2026 don't have to look too far to find some great investments. There are many top stocks that can make for solid long-term growth investments that are trading at absurdly cheap valuations right now.
Three stocks that are trading at low earnings multiples and that have lots of growth still ahead are Novo Nordisk (NYSE:NVO), Intuit (NASDAQ:INTU), and Reddit (NYSE:RDDT). Here's why these can make for great growth stocks to buy right now.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Novo Nordisk
It's been a rough stretch for healthcare company Novo Nordisk, as it has declined about 23% in value over the past 12 months. Investors are questioning its ability to grow and compete alongside its rival, Eli Lilly. Novo was an early leader in the GLP-1 race with Ozempic and Wegovy, but now has lost more than a couple of steps.
The reason I'm not worried and remain invested in the stock, however, is that there are still ample growth opportunities ahead for Novo. A higher-dose version of Wegovy has shown that it can help people lose even more weight. And the company is still in the early innings of the launch of its weight loss pill, which obtained approval from regulators late last year.
Novo's sales have been underwhelming of late, and it has a new CEO working to turn things around. There's some uncertainty ahead, no doubt about that. But this is still an excellent healthcare company to invest in for the long haul. And its stock is trading at an absurdly low forward price-to-earnings (P/E) multiple of 13, which is based on analyst projections. It's absurdly cheap and practically a no-brainer buy at these levels.
Intuit
One of the worst stocks within the S&P 500 this year has been Intuit, the software company known for popular titles such as TurboTax and QuickBooks. Professionals rely on its software on a daily basis, but the threat that artificial intelligence (AI) will disrupt its business has weighed the stock down heavily -- it's crashed around 50% this year.
AI is a threat that I believe is a gross miscalculation when it comes to Intuit. Tax and accounting are not things I believe that consumers and business professionals are going to rely on AI for, as errors or hallucinations for these types of tasks can be extremely costly for users.
The company recently wrapped up its 2026 fiscal year (it ended on July 31), and revenue was up by 14%, totaling $21.4 billion. For the year ahead, it expects a bit of a slowdown, but the growth rate isn't all that bad, projected to be within 9% to 10%.
This is still a growing business, and with Intuit trading at a forward P/E of less than 15, it's another incredibly cheap stock to buy right now.
Reddit
Social media stock Reddit is also down big this year, tumbling 30% thus far in 2026. This is another stock where I believe the market has overreacted to when it comes to AI. Chatbots often reference Reddit community discussions within the answers they give to users, which is why I believe the social media platform has a lot of power and leverage. While AI can do a good job of scraping data from websites, it values the back-and-forth, balanced discussions on Reddit forums.
When Reddit posted its second-quarter results in July, they looked terrific, with revenue rising by 61% year over year, to $805 million. It was the eight straight period where its growth rate was over 60%. Net income was also 31% of its top line -- a terrific profit margin.
Reddit is a solid business to invest in, and with the stock trading at a forward P/E of around 25, it's the most expensive stock on this list, but it's also the fastest growing. With such impressive growth, at this kind of multiple, Reddit's stock could prove to be a steal of a deal.
Should you buy stock in Novo Nordisk right now?
Before you buy stock in Novo Nordisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Novo Nordisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $433,160!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,296,254!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 15, 2026.
David Jagielski, CPA has positions in Novo Nordisk. The Motley Fool has positions in and recommends Eli Lilly, Intuit, Novo Nordisk, and Reddit. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

3 Absurdly Cheap Growth Stocks to Buy Before the End of 2026

Reddit RDDT and Alphabet GOOGL are major players in the digital advertising space. While Reddit is an emerging social media platform gaining traction with community-driven advertising, Alphabet remains the dominant force in global search and digital ad markets.
Reddit or Alphabet — Which of these Digital Advertising stocks has the greater upside potential? Let’s find out.
The Case for RDDT Stock
Reddit is benefiting from strong demand in its advertising business, which has become a key growth driver of the company’s impressive financial performance and future growth prospects. In the second quarter of 2026, Reddit’s advertising revenues grew 64% year over year to $762 million, outpacing even its impressive total revenue growth of 61%. This growth is broad-based, with strength across various sales channels, including large customers, mid-market, and Small and Medium-sized Businesses (SMBs).
Reddit’s innovation in its ad stack is another key factor in strengthening its competitive edge. The launch and rapid adoption of Reddit Max, an AI-driven suite for ad automation and optimization, has delivered significant results. Advertiser usage of Max grew by more than 60% from the first quarter, and revenues from Max campaigns increased by more than 150%. Features like tailored creatives and dynamic product ads are helping brands achieve better outcomes, such as Lenovo’s 40% higher purchase value with Max campaigns compared to standard campaigns.
The company is also expanding its advertiser base and ecosystem, making it easier for businesses of all sizes to succeed on Reddit. Scaled channel revenues, which include mid-market and SMBs, doubled year over year, and active advertisers grew more than 70% in the second quarter of 2026. Integrations with platforms like Shopify and a growing ads API ecosystem are streamlining onboarding and campaign management, further fueling Reddit’s commercial momentum.
With ongoing investments in product innovation, user experience and ad technology, Reddit is poised to capture more advertising dollars and further strengthen its position in the digital ad market. For the third quarter of 2026, management expects revenues between $860 million and $870 million, representing 47% to 49% year-over-year growth.
The Case for GOOGL Stock
Alphabet is benefiting from strong momentum across its advertising business, supported by continued growth in Google Search and YouTube and deeper integration of Gemini across its ad infrastructure. Google advertising revenues increased 14.4% year over year to $81.63 billion in the second quarter of 2026. Google Search & other revenues jumped 17% to $63.27 billion, while YouTube advertising revenues increased 13% to $11.06 billion. Retail and finance were the biggest contributors to Search growth, while direct response and brand advertising supported YouTube.
Alphabet’s growing use of Gemini across its advertising infrastructure remains a key catalyst. Gemini helps understand longer and more detailed searches. In the second quarter of 2026, shopping ads achieved a 20% improvement in showing highly relevant advertisements. AI Max has already been adopted by 500,000 advertisers, with AI-powered campaigns generating an average of 15% more conversions or value at a similar return on ad spend.
YouTube further strengthens GOOGL’s competitive position through its combination of connected TV, Shorts, creators and direct-response advertising. Continued innovation in AI-driven targeting, shoppable formats and Search monetization should help Alphabet capture a greater share of advertising budgets despite intense competition.
Alphabet expects AI-driven improvements in Search to continue supporting user and advertiser experiences. However, third-quarter growth will face tougher Search comparisons and a slight foreign-exchange headwind, particularly across Search and YouTube ads.
Price Performance and Valuation of RDDT and GOOGL
In the year-to-date period, shares of Alphabet have gained 11.6%, whereas Reddit stock has lost 29.4%. Alphabet’s outperformance can be attributed to its continued AI push across its search, YouTube and cloud computing platforms. An expanding focus on improving the enterprise footprint is expected to boost prospects.
The decline in RDDT can be attributed to choppy and declining search referral traffic, particularly late in the second quarter of 2026, which led to a slight decrease in daily active users and heightened volatility. Low visibility into external search trends also remains a headwind.
RDDT and GOOGL Stock Performance
Valuation-wise, RDDT and GOOGL shares are currently overvalued, as indicated by Value Scores of D and C, respectively.
In terms of the forward 12-month Price/Sales, RDDT shares are trading at 7.5X, which is lower than GOOGL’s 8.32X.
RDDT and GOOGL Valuation
How Do Earnings Estimates Compare for RDDT & GOOGL?
The Zacks Consensus Estimate for RDDT’s 2026 earnings is pegged at $5.27 per share, which has increased 0.95% over the past 30 days. This indicates a 101.15% rise year over year.
Reddit Inc. Price and Consensus
The Zacks Consensus Estimate for GOOGL’s 2026 earnings is pegged at $20.52 per share, which has increased by a penny over the past 30 days. This indicates an 89.82% year-over-year increase.
Alphabet Inc. Price and Consensus
Conclusion
While both Reddit and Alphabet offer strong digital advertising growth prospects, RDDT appears better positioned for greater upside, supported by faster ad revenue growth and expanding advertiser adoption.
Despite its dominant advertising position, Alphabet faces intensifying competition, tougher Search comparisons and near-term foreign-exchange headwinds that could limit upside.
Both Reddit and Alphabet currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

RDDT vs. GOOGL: Which Digital Advertising Stock Has an Edge Right Now?

In the latest look at the underlying components of the S&P 500 ordered by largest market capitalization, Reddit Inc (Symbol: RDDT) has taken over the #388 spot from CF Industries Holdings Inc (Symbol: CF), according to The Online Investor.
Market capitalization is an important data point for investors to keep an eye on, for various reasons. The most basic reason is that it gives a true comparison of the value attributed by the stock market to a given company's stock. Many beginning investors look at one stock trading at $10 and another trading at $20 and mistakenly think the latter company is worth twice as much — that of course is a completely meaningless comparison without knowing how many shares of each company exist. But comparing market capitalization (factoring in those share counts) creates a true "apples-to-apples" comparison of the value of two stocks. In the case of Reddit Inc (Symbol: RDDT), the market cap is now $22.05 billion, versus CF Industries Holdings Inc (Symbol: CF) at $20.76 billion.
Below is a chart of Reddit Inc versus CF Industries Holdings Inc plotting their respective size rank within the S&P 500 over time (RDDT plotted in blue; CF plotted in green):
Below is a three month price history chart comparing the stock performance of RDDT vs. CF:
Another reason market capitalization is important is where it places a company in terms of its size tier in relation to peers — much like the way a mid-size sedan is typically compared to other mid-size sedans (and not SUV's). This can have a direct impact on which mutual funds and ETFs are willing to own the stock. For instance, a mutual fund that is focused solely on Large Cap stocks may for example only be interested in those companies sized $10 billion or larger. Another illustrative example is the S&P MidCap index which essentially takes the S&P 500 index and "tosses out" the biggest 100 companies so as to focus solely on the 400 smaller "up-and-comers" (which in the right environment can outperform their larger rivals). So a company's market cap, especially in relation to other companies, carries great importance, and for this reason we at The Online Investor find value to putting together these rankings daily.
Examine the full RDDT market cap history vs. the full CF market cap history.
At the closing bell, RDDT is up about 1.5%, while CF is off about 1.5% on the day Friday.
Further RDDT Research:

Reddit Now #388 Largest Company, Surpassing CF Industries Holdings

Key Points
AppLovin leverages proprietary AI tools and a scaled software platform to drive industry-leading net margins.
Reddit is successfully diversifying its revenue through data licensing for artificial intelligence and community-targeted advertising.
Which growth-oriented tech player belongs in your long-term portfolio?
In an era where digital advertising and user attention drive growth, AppLovin (NASDAQ:APP) and Reddit (NYSE:RDDT) offer unique ways to play the tech market. Which stock is the better buy today?
AppLovin operates a high-margin marketing platform specialized in mobile gaming, while Reddit leverages its massive community-driven forum to sell ads and license data. Both companies saw significant expansion in the last year, but their underlying financials and target audiences differ significantly. This comparison evaluates their respective strengths and risks for individual investors in 2026.
The case for AppLovin
AppLovin sells marketing tools to mobile app publishers and advertisers, including its Axon Ads Manager and MAX suites. These tools help brands reach over a billion people daily within the mobile gaming ecosystem. In its latest annual report, filed for the year ended December 31, 2024, the company detailed expansion into e-commerce after divesting its Apps business in June 2025. This strategic shift allows the company to focus exclusively on its higher-margin software platform.
In FY 2025, revenue reached nearly $5.5 billion, representing a significant 70% increase compared to the previous year. The company reported net income of approximately $3.3 billion, which resulted in an impressive net margin of roughly 60.8%. This indicates a strong trend of rising profitability as the software-focused model scales efficiently across the global advertising market.
As of its December 2025 balance sheet, the debt-to-equity ratio was approximately 1.7x, which measures total debt obligations against the equity held by shareholders. The current ratio of roughly 3.3x indicates the company has more than triple the short-term assets needed to cover its current liabilities. Free cash flow for FY 2025 was nearly $3.9 billion, representing cash generated from operations minus money spent on capital assets.
The case for Reddit
Reddit operates a platform where users participate in over 100,000 active communities, providing a unique environment for digital advertisers. The company generates revenue through third-party advertising and content licensing for artificial intelligence training as interest in communication stocks grows. According to its latest annual report, filed for the year ended December 31, 2025, its user base reached 130 million daily active uniques by mid-2026.
In FY 2025, revenue reached nearly $2.2 billion, reflecting growth of approximately 69.4% over the prior year. The company posted its first full-year net income of roughly $529.7 million, yielding a net margin of approximately 24.1%. This transition to profitability follows a net loss of over $484 million in the previous fiscal year, highlighting a major financial pivot.
As of its December 2025 balance sheet, the company carried a debt-to-equity ratio of 0.0x and a current ratio of nearly 11.6x, indicating high liquidity. Free cash flow for FY 2025 was approximately $684.2 million, which is cash from operations minus capital expenditures. Note that stock-based compensation represented roughly 49.7% of operating cash flow, which inflates reported cash generation since SBC is a non-cash expense added back in the statement.
Risk profile comparison
AppLovin is heavily dependent on the mobile app ecosystem and the policies of major platform providers like Apple (NASDAQ:AAPL) and Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG). Changes to tracking or privacy rules by these third parties could negatively impact the effectiveness of its advertising tools. The company also faces intense competition and potential goodwill impairment, alongside a 2025 securities fraud class action that remains an ongoing concern.
Reddit faces risks from revenue concentration, as it relies on a small number of advertisers for the majority of its income. It competes for ad spending against major platforms like Amazon (NASDAQ:AMZN) and Snap (NYSE:SNAP), while also navigating the rise of AI-based information retrieval tools. The company must also manage volatility from retail investor sentiment and a multi-class share structure that concentrates voting power.
Valuation comparison
Reddit carries a higher Forward P/E, while AppLovin trades at a higher P/S ratio relative to its historical averages.
Forward P/E
20.7x
29.8x
P/S ratio
20.0x
14.0x
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Which stock would I buy in 2026?
I'd go with Reddit. To give AppLovin its due, its AI-powered advertising platform is one of the more profitable software businesses being built right now, and the long-term vision of expanding beyond mobile gaming into e-commerce and other verticals is worth taking seriously. But the Q2 revenue miss and below-consensus guidance introduced uncertainty at a moment when the stock was already under significant pressure. That combination is difficult to look past.
Reddit is putting up numbers that would have seemed improbable just two years ago. Advertising revenue has grown at a strong pace for seven consecutive quarters, daily active users keep climbing, and the company is now solidly profitable with strong free cash flow. Its AI licensing business, which sells access to its archive of user conversations to technology companies, adds a revenue stream that could prove durable, though the long-term value of that data will depend on how the AI industry evolves.
AppLovin has a stronger margin profile and a more proven business model. But I like that Reddit is growing faster, diversifying its revenue intelligently, and doing it from a platform that keeps getting more valuable as it scales. For a long-term investor, that combination makes Reddit the stronger pick right now.
Should you buy stock in AppLovin right now?
Before you buy stock in AppLovin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $410,024!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,372,815!*
Now, it’s worth noting Stock Advisor’s total average return is 950% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 10, 2026.
Sara Appino has positions in Amazon and Apple. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, and Reddit. The Motley Fool has a disclosure policy.

Reddit, Inc.

Sign up and unlock all the capabilities of the AI-screener