Reddit (RDDT) – Reddit Stock Prediction 2024, 2025, 2030, 2040
What is Reddit (RDDT) stock prediction?
According to our Al stock price forecaster at FinTechBrains, the recent long-term Reddit stock prediction forecasts prices may linger between $64 – $110 in 2024, $140 in 2025, $170.40 in 2026, and leap further to $291.7 by the end of 2030 while making its all-time high of $443.4 in 2035 and $595.05 in 2040.
What does Reddit (RDDT) exactly do?
Reddit is an open forum for its users where any Reddit user can ask queries from any field and trigger a discussion on it. Reddit lets a common man voice out his/her opinions openly in its forum on any topic without breaking its no-image tarnishing policy.
Their main source of revenue is through advertisements and subscription models. Reddit allows digital advertisers to post their advertisements on the forum, the prices vary from the ads being placed on the famous discussion threads to the least engaged threads. While the subscription model, allows users to subscribe to avoid seeing ads. While the Reddit contributor programs allow even their users to earn, the company also plans to sell their human-generated data and content to the Al firms in the future.
| Company | Information |
|---|---|
| Company Name | Reddit, Inc. |
| Founded on | 2005 |
| CEO | Steven Ladd Huffman |
| Industry Type | Internet Content & Information |
| RDDT stock price today per share (10th, oct 2024) | $ 73.25 USD |
| Market Capitalization | 12.15 Billion USD |
| Services | Informational digital, advertisement, communication and forum related services |
| Competitors | Quora, Pinterest, Wiki. |
What is Reddit Stock price history and Reddit price chart?
Reddit stock 10-year long-term Forecast | Where will Reddit stock be in 5 years?
| YEAR | Forecasted High Share Prices (in USD) | YOY% yield | Forecasted Low Share Prices (in USD) |
|---|---|---|---|
| 2024 | $ 110 | 64 | |
| 2025 | $ 140 | 27 % | $ 77.74 |
| 2026 | $ 170.40 | 22 % | $ 98.50 |
| 2027 | $ 200.73 | 18 % | $ 119.4 |
| 2028 | $ 231.07 | 15 % | $ 139.54 |
| 2029 | $ 261.4 | 13 % | $ 159.78 |
| 2030 | $ 291.7 | 12 % | $ 179.82 |
| 2031 | $ 322.07 | 10 % | $ 199.67 |
| 2032 | $ 352.4 | 9 % | $ 219.36 |
| 2033 | $ 382.7 | 9 % | $ 238.90 |
| 2034 | $ 413.07 | 8 % | $ 258.31 |
| 2035 | $ 443.4 | 7 % | $ 277.60 |
| 2040 | $ 595.07 | 30 % | $ 372.61 |
Reddit Short-term Stock prediction
| MONTH – YEAR | Forecasted Share Prices (in USD) |
|---|---|
| October – 2024 | $ 73.42 |
| November – 2024 | $ 75.4 |
| December – 2024 | $ 77.8 |
| January – 2025 | $ 80.2 |
| February – 2025 | $ 82.6 |
| March – 2025 | $ 85.08 |
| April – 2025 | $ 87.48 |
| May – 2025 | $ 89.8 |
| June – 2025 | $ 92.3 |
| July – 2025 | $ 94.71 |
| August – 2025 | $ 97.12 |
| September – 2025 | $ 99.53 |
| October – 2025 | $ 101.9 |
RDDT Stock Prediction YouTube Video
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Reddit stock prediction 2024
| Stock Name | Stock Price (in USD) |
|---|---|
| Reddit Stock Forecast 2024 | $ 64 – $ 110 |
Reason –
Reddit plans to increase their revenue in 2024 by strategizing below things
User Experience Improvements
Interface Updates: Reddit plans to make its platform easier to use, especially for newcomers, with a more intuitive design.
Personalized Content: The site aims to enhance content recommendations so users can discover posts and subreddits that match their interests.
Monetization Strategies
Advertising Options: Reddit plans to introduce new advertising formats and targeting options to attract more advertisers.
Premium Features: The company may expand its Reddit Premium subscription by adding more benefits for subscribers.
Reddit Stock Prediction 2025
| Stock Name | Stock Price (in USD) |
|---|---|
| Reddit Stock Forecast 2025 | $ 77.74 – $ 140 |
Reason –
By 2025 Reddit plans to aim directly at preserving their net profits by below pointers.
Video and Multimedia Content
Focus on Video: Reddit will enhance its video features to encourage users to share and engage with video content.
Live Streaming: The platform might explore live streaming capabilities for real-time interactions.
Safety and Moderation
Enhanced Safety Measures: Reddit plans to strengthen protections against harassment and abuse, with better reporting systems.
Content Policies: The platform will refine its moderation policies to ensure safe and welcoming communities.
Mobile App Development
Offline Access: The company is considering features that allow users to browse content without an internet connection.
Reddit stock prediction 2030 – 2031
| Stock Name | Stock Price (in USD) |
|---|---|
| Reddit Stock Forecast 2030 | $ 179.82 – $ 291.7 |
| Reddit Stock Forecast 2031 | $ 199.67 – $ 322.07 |
Reason –
Reddit’s 2030 roadmap includes,
Innovative Technologies
- AR and VR Experiences: Reddit might explore using augmented reality (AR) and virtual reality (VR) to create immersive user experiences.
- Blockchain for Transparency: The platform may consider using blockchain technology for transparency in user interactions and data security.
- Safety and Moderation
Enhanced User Safety: The platform plans to strengthen safety features using AI tools, including better reporting tools and support for users facing harassment.
Reddit Stock Prediction 2035
| Stock Name | Stock Price (in USD) |
|---|---|
| Reddit Stock Forecast 2035 | $ 277.60 – $ 443.4 |
Reason –
Education and Resources
- Knowledge Sharing Spaces: Reddit may create areas for educational content where users can access expert advice and resources.
- Collaborations with Schools: The company could partner with educational institutions to provide learning platforms and discussions.
Global Growth and Localization
- Expansion into New Markets: Reddit will likely focus on entering new countries and adapting the platform to fit local cultures and needs.
- Localized Content: The platform may ensure that content is relevant and accessible in different regions.
Reddit Stock Prediction 2040
| Stock Name | Stock Price (in USD) |
|---|---|
| Reddit Stock Forecast 2040 | $ 372.61 – $ 595.07 |
Reason –
Technological Innovations
Quantum Computing: As technology advances, Reddit could use quantum computing for better content recommendations and community insights.
Cross-Platform Integration: The platform may allow users to easily share content across different social media and communication platforms.
Sustainability Initiatives
Community Challenges for Sustainability: Reddit might launch challenges that encourage users to adopt eco-friendly practices.
Educational Campaigns on Climate Change: The platform could facilitate campaigns that raise awareness about sustainability issues.
Community Engagement
Decentralized Governance: Reddit could allow communities to help create their own rules and moderation practices using blockchain technology.
AI Helpers for Communities: Each subreddit might have AI assistants that guide users through discussions and suggest relevant content.
Reddit Stock Prediction through Technical Analysis
As of October 2024, the Reddit stock price stands at USD 71.42. The current Reddit share price target lingers near the ceiling resistance area formed by previously touched prices by Reddit stock. Previously the price action did try to break this resistance but didn’t succeed.
The consolidation formation strongly indicates the chances of a breakout in the coming months. One good quarter results announcement by Reddit can further push Reddit share prices to break through the resistance and soar further in the future.
Reddit Stock Prediction through Fundamental Analysis
Reddit has never made a profit, and its financial statements and ratios have not performed well so far.
Reddit IPO date was March 21, 2024, and since it recently went public, calculating specific financial ratios is challenging at this stage.
The average debt/equity ratio is 0.5 which clearly states that the company is not leveraged much against its equity and could be a favorite for a risk-averse investor who likes investing in less leveraged business. Though Reddit is not making profits right now, one should appreciate its history of managing debt.
An average ROE of -7% says Reddit has failed to utilize the capital to convert it into returns consistently. But note that Reddit’s ROE has been consistently negative. This could be alerting for the investors.
The above figures are no doubt the traits of a poorly performing company. In fact, comparing financial ratios suggests that Reddit’s (RDDT) share price in October 2024 appears overvalued. But looking just at financial ratios won’t work. So let us dig further into financial statements.
| Financial Statement | 2024 | 2023 | 2022 | 2021 | 2020 |
|---|---|---|---|---|---|
| Sales Revenue | 0.98 | 0.8 | 0.67 | 0.48 | 0.23 |
| Net income | -0.57 | -0.09 | -0.16 | -0.13 | -0.06 |
| Free Cash Flow | 0.02 | -0.08 | -0.1 | -0.13 | -0.06 |
| Debt | 0.03 | 0.03 | 0.02 | 0.01 | 0.02 |
Reddit’s stock prices have been declining over the past five years.
While the sales revenue slowly climbed from $0.23 B in 2020 to $ 0.98 B (projected by the end of 2024). Reddit failed to make any net income ever. Reddit hasn’t paid any dividends nor purchased their own stocks resulting in negative EPS.
In 2024, Reddit is expected to have a positive cash flow of $0.02 billion for the first time in its history. In the past, Reddit’s negative cash flow raised concerns about its ability to reinvest or expand its business.
Is Reddit stock buy sell or hold?
The estimated value of one RDDT stock using a discounted cash flow (DCF) model is $4.79. Since the current market price is $71, the stock is overvalued by 93%. Under a base case scenario, the relative value of one RDDT stock is $42.62. This means Reddit Inc. is overvalued by 40% compared to the market price of $71.
Reddit’s stock in October 2024 is overvalued by about 66% based on its financial ratios and statements. For current investors, it might be a good time to either hold or sell, depending on their financial strategy.
New investors interested in Reddit should consider waiting until the share prices are lower or more aligned with the company’s true value before investing.
Is Reddit a good stock to buy long-term? | Conclusion
Reddit is a digital platform majorly used as a forum for discussion amongst their users. Its major chunk of revenue comes from advertisements and monthly ad-free subscriptions. Reddit has been on an acquiring spree by acquiring a lot of startups like SpikeTrap, meaning Coud, Dubsmaash, spell, etc showing their ambitious plan to expand rapidly in the digital space in the future.
Reddit has struggled to make profits from its business model. While its earnings have gradually improved, the company has yet to report net income, positive cash flows, or returns for its investors.
Though Reddit provides a great value and platform for their users without being biased, at present the company’s market capitalization growth looks more like a valuation game. The series of financial investors invest in the company, the investment gets burnt out in some time and then the company goes ahead looking for the next round of investment eventually raising the valuation of the company.
Note – Kindly use this blog information for educational purposes only. Investments are usually risky and subject to market emotions, so consult a licensed financial advisor before investing in the stocks.
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