Should You Buy Reddit Stock

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Should You Buy Reddit Stock

Should You Buy Reddit (Rddt) Stock?

Reddit (RDDT) stock has gained almost 260% in a span of one year. This makes one question if you have missed the party of Reddit (RDDT)?

Today, Reddit (RDDT) is one of the popular sites all over the world. Also, the website has subreddits or categories, which makes it easy for advertisers to show their products/services to the right audience.

Reddit (Rddt) Market Cap Is $45 Billion

As far as monetization opportunities are concerned, Reddit (RDDT) remains a big player without any doubt. That's a key reason why the Reddit (RDDT) stock has skyrocketed.

Today, the market cap of Reddit (RDDT) stock is around $45 billion, and the stock is up by 260% in just one year. Also, the user growth and the revenue of Reddit (RDDT) remain strong.

In the last quarter, the revenue of Reddit (RDDT) was up by 78% and recorded at $500 million. In addition, there is a 21% increase in the daily unique visitors.

But, it's also a reality that the Reddit (RDDT) stock's growth is just way too much. So, if you were to buy the Reddit (RDDT) stock, you would have to pay a premium price.

The P/E multiple of Reddit (RDDT) is 100, which screams expensive! When we look around, other social stocks like Pinterest are only trading at a multiple of 12.

So, it's risky to buy the Reddit (RDDT) stock at such high levels. After all, even slightly negative news will send it crashing down to reality.

But despite all the risks, experts have set $202 as the price target for the Reddit (RDDT) stock. So, if you are thinking of buying Reddit (RDDT) stock, you should consider the fact that it is indeed overpriced.

far better option would be to look at other stocks like Alphabet, Meta Platforms, and so on. The scale of these companies is way bigger than Reddit (RDDT), and they are also more diversified.

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