Should You Buy, Sell or Hold Reddit Stock at P/S of 18.19X?
Portfolio Pulse from
Reddit (RDDT) is experiencing strong user growth, AI-driven partnerships, and increased ad revenues. However, its high price-to-sales ratio of 18.19X raises concerns about valuation and market competition.

February 18, 2025 | 4:30 pm
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NEUTRAL IMPACT
Reddit is benefiting from user growth, AI partnerships, and ad revenue increases, but its high P/S ratio of 18.19X raises valuation concerns.
Reddit's strong user growth and increased ad revenues are positive indicators for the company's performance. However, the high price-to-sales ratio suggests that the stock may be overvalued, which could deter potential investors. The market competition also adds to the uncertainty, balancing the positive and negative aspects, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100