Reddit trades at 34.5 times earnings versus 26.5 times for Meta Platforms, even though Reddit's revenue grew 66.6% over the four quarters to June 30, 2026, more than double Meta's 27.7%. Meta is more profitable, with a 38.1% operating margin against Reddit's 28.2%. Reddit's ad revenue reached $762 million in fiscal Q2 2026, up 64%, and its active advertisers grew by more than 70%. Management expects fiscal Q3 revenue of $860 million to $870 million, or 47% to 49% growth, below the 61.1% growth reported for Q2, and warns that search traffic will remain volatile. Reddit's share price fell 22.2% in the year to Oct. 16, 2026, and the company is expected to report on or around Nov. 4.
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