The 3 Biggest Reasons to Buy Reddit Stock Before Its July 30 Earnings Report

1 month ago 27

Thomas Richmond

Tue, July 28, 2026 astatine 9:24 AM CDT 3 min read

Quick Read

RDDT has dropped 27% year-to-date contempt 69% gross maturation and 5 consecutive EPS beats, making it a uncommon hypergrowth banal connected sale.
RDDT's 74% advertisement gross maturation and GAAP profitability dwarf PINS and SNAP, some of which posted nett losses connected gross maturation nether 18%.
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Reddit (NYSE:RDDT) enters its July 30 Q2 net study with gross increasing 69%, advertisement income accelerating 74%, and adjusted EBITDA borderline reaching 40.1%. Despite those results and a caller $1 cardinal buyback authorization, the banal is down astir 25% successful 2026, creating a compelling setup up of Thursday's report.

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3 Reasons Reddit Is Turning Heads Ahead of Earnings

1. Investors are expecting an net beat. Reddit has beaten EPS estimates successful 5 consecutive quarters, astir precocious posting Q1 2026 EPS of $1.01 vs. $0.5639 estimated (a 79.11% surprise) connected $663.41 cardinal successful revenue. Polymarket's real-money likelihood connected a Q2 bushed beryllium astatine 93%, up from 90% a week ago. Analysts' mean terms people of $227.30 implies the banal could person 30.3% upside from its existent terms of $174.38. Analysts person 21 bargain ratings, with 10 holds and 1 sell.

2. Reddit is simply a capital-light currency machine. Q1 escaped currency travel reached $311.16 cardinal connected capex of conscionable $1.09 million. Cash and equivalents beryllium astatine $1.374 billion. Net borderline expanded to 30.7% from 6.7% a twelvemonth ago, and stock-based comp declined 27% YoY. These are retirement-portfolio balance-sheet metrics attached to hypergrowth results.

3. Ad maturation is accelerating. Q1 advertisement gross grew 74% YoY, planetary ARPU climbed 44%, and planetary gross jumped 76%. Q2 guidance calls for $715-$725 cardinal successful gross and $285-$295 cardinal successful adjusted EBITDA.

Reddit Is Growing Far Faster Than Pinterest and Snap

Pinterest (NYSE:PINS) posted 17.8% Q1 gross growth connected a GAAP nett nonaccomplishment of $73.59 cardinal and is guiding for 14-16% growth into Q2.

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Snap (NYSE:SNAP) grew Q1 gross conscionable 12.15% with advertisement gross up lone 3%, posting a $88.95 cardinal nett loss.

By comparison, Reddit compounds advertisement gross astatine 74%, is GAAP profitable, and trades astatine a P/E of 48. The company's maturation complaint makes that aggregate consciousness beauteous reasonable. Pinterest and Snap suffer to Reddit connected growth, margins, and the equilibrium sheet.