Key takeaways
- Reddit is a content and information business with stocks listed in the US on the New York Stock Exchange.
- If you want to buy shares in Reddit you'll need a trading platform with access to the US. Be sure to check foreign exchange fees.
- Open and fund your brokerage account before searching for ""RDDT"" to start trading Reddit shares from Australia.
Reddit, Inc. is an internet content & information business with stocks listed in the US. Reddit shares (RDDT) are listed on the NYSE and all prices are listed in US Dollars. Its last market close was US$216.47 – an increase of 4.29% over the previous week. Here's how to invest if you're based in Australia.
How to buy shares in Reddit
- Compare share trading platforms. To buy shares in a company listed in the US from Australia you'll need to find a trading platform that offers access to US stock markets. Look for a platform with low brokerage and foreign exchange fees.
- Open and fund your brokerage account. Complete an application with your personal and financial details, which will typically include your ID and tax file number. Fund your account with a bank transfer, credit card or debit card.
- Search for Reddit. Find the share by name or ticker symbol: RDDT. Research its history to confirm it's a solid investment that matches your financial goals.
- Purchase now or later. Buy today with a market order or use a limit order to delay your purchase until Reddit reaches your desired price. To spread out your risk, look into dollar-cost averaging, which smooths out buying using consistent intervals and amounts.
- Decide on how many to buy. At last close price of US$216.47, weigh your budget against a diversified portfolio that can minimise risk through the market's ups and downs. You may be able to buy a fractional share of Reddit, depending on your broker.
- Check in on your investment. Congratulations, you own a part of Reddit. Optimise your portfolio by tracking how your stock — and even the business — performs with an eye on the long term. You may be eligible for dividends and shareholder voting rights.
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Is it a good time to buy Reddit stock?
The technical analysis gauge below displays real-time ratings for the timeframes you select. However, this is not a recommendation. It represents a technical analysis based on the most popular technical indicators: Moving Averages, Oscillators and Pivots. Finder might not concur and takes no responsibility.
Is it worth buying Reddit stock?
Valuing Reddit stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Reddit's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Reddit's P/E ratio
Reddit's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 100x. In other words, Reddit shares trade at around 100x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
Reddit's EBITDA
Reddit's EBITDA (earnings before interest, taxes, depreciation and amortisation) is US$279 million (£0.0 million).
The EBITDA is a measure of a Reddit's overall financial performance and is widely used to measure stock profitability.
Reddit financials
| Revenue TTM | US$1.9 billion |
|---|---|
| Operating margin TTM | 23.69% |
| Gross profit TTM | US$1.7 billion |
| Return on assets TTM | 6.51% |
| Return on equity TTM | 15.22% |
| Profit margin | 18.33% |
| Book value | 13.785 |
| Market capitalisation | US$41 billion |
| EBITDA | US$279 million |
TTM: trailing 12 months
Reddit share dividends
We're not expecting Reddit to pay a dividend over the next 12 months.
Reddit overview
Reddit, Inc. operates a digital community in the United States and internationally. The company's platform enables user to engage in conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share laughs, and find belonging. It also organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.
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