Reddit has caught up to Google's Q4 run-rate P/E ratio.

AI Summary

Author compares Reddit's Q4 2025 run-rate P/E (~28.2x) to Alphabet's (~28.6x), arguing Reddit's valuation has reset dramatically as profits tripled while the multiple compressed ~5x.

RDDT — LONG The author argues Reddit's valuation has reset dramatically: quarterly EPS rose from $0.36 (Q4 2024) to $1.24 (Q4 2025) while the stock fell from $214 to $140, compressing the run-rate P/E from ~148.6x to ~28.2x. This puts Reddit's run-rate multiple roughly in line with Alphabet's ~28.6x, implying the market has re-rated the stock despite tripling profits. The author cites a Gemini prediction that Reddit's run-rate P/E will outpace PayPal's within two years as a forward catalyst. No specific risk is stated by the author.

Profits tripled while the valuation multiplier dropped by 5x.

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u/MasterpieceOk8986 Reddit r/stocks

Reddit P/E reset to ~28x after profit tripled

The author argues Reddit's valuation has reset dramatically: quarterly EPS rose from $0.36 (Q4 2024) to $1.24 (Q4 2025) while the stock fell from $214 to $140, compressing the run-rate P/E from ~148.6x to ~28.2x. This puts Reddit's run-rate multiple roughly in line with Alphabet's ~28.6x, implying the market has re-rated the stock despite tripling profits. The author cites a Gemini prediction that Reddit's run-rate P/E will outpace PayPal's within two years as a forward catalyst. No specific risk is stated by the author.

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