RDDT
Reddit, Inc.
RDDT has the edge over TME overall, supported by stronger fundamentals and stronger modeled upside.
TME
Tencent Music Entertainment Group
TME has lower modeled downside risk, despite its lower overall score.
RDDT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
RDDT's revenue, profitability, cash flow and balance sheet are all currently healthy.
TME Fundamentals
| Metric | Status |
|---|---|
| Stable | |
| Strong | |
| Strong | |
| Strong |
TME's profitability, cash flow and balance sheet are currently strong, and its revenue is stable.
RDDT PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 16x | $99.55 | — |
| Current | 20x | $99.55 | — |
| Cheap | 35x | $171 | +72% |
| Fair | 46x | $228 | +129% |
| Expensive | 53x | $262 | +163% |
Historical ranges are pointers, not guarantees.
RDDT has the edge over TME in the historical PE scenario, which offers more potential upside but is not a forecast.
TME PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Current | 11x | $9.02 | — |
| Cheap | 12x | $9.60 | +6.4% |
| Fair | 32x | $26.45 | +193% |
| Expensive | 52x | $43.01 | +377% |
Historical ranges are pointers, not guarantees.
TME's PE is 11x, but its earnings don't support one, so it isn't a reliable read right now.
RDDT Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Moderate | |
| Low |
RDDT has the edge over TME on the outlook, with more favorable profitability expectations.
TME Forward outlook
| Metric | Outlook |
|---|---|
| -- | |
| Growth | |
| Growth | |
| Stable | |
| Limited | |
| Moderate |
Analysts expect earnings and revenue growth for TME, with profitability holding steady.
RDDT Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $6.32 | +29% |
| Q3 2024 | -$7.98 | -$7.17 |
| Q2 2024 | -$8.19 | -$7.15 |
| Q1 2024 | -$8.38 | -$7.25 |
| Q4 2023 | -$0.56 | +$0.41 |
| Q3 2023 | -$0.81 | -$0.02 |
| Q2 2023 | -$1.04 | -$0.48 |
| Q1 2023 | -$1.13 | -$0.48 |
| Q4 2022 | -$0.97 | -$0.19 |
TME has the stronger earnings trend. Trailing diluted EPS is down 39% for RDDT versus TME down 16%.
TME Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Q2 2026 | $0.83 | -16% |
| Q1 2026 | $0.82 | -11% |
| Q4 2025 | $1.04 | +63% |
| Q3 2025 | $1.05 | +81% |
| Q2 2025 | $0.99 | +83% |
| Q1 2025 | $0.92 | +84% |
| Q4 2024 | $0.64 | +36% |
| Q3 2024 | $0.58 | +29% |
TME earned $0.83 per share over the past year, down 16% from the year before. Its recent earnings include one-off gains.
RDDT Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q3 2026 | $895M | +53% |
| Q2 2026 | $804.9M | +61% |
| Q1 2026 | $663.4M | +69% |
| Q4 2025 | $725.6M | +70% |
| Q3 2025 | $584.9M | +68% |
| Q2 2025 | $499.6M | +78% |
| Q1 2025 | $392.4M | +61% |
| Q4 2024 | $427.7M | +71% |
RDDT has the edge over TME on sales, with stronger typical year-over-year growth.
| Quarter | Margin | YoY |
|---|---|---|
| Q3 2026 | 29% | +5.5 points |
| Q2 2026 | 29% | +15 points |
| Q1 2026 | 28% | +27 points |
| Q4 2025 | 32% | +20 points |
| Q3 2025 | 24% | +22 points |
| Q2 2025 | 14% | +25 points |
| Q1 2025 | 1% | +244 points |
| Q4 2024 | 12% | +11 points |
RDDT's operating margin was 29% last quarter, up 5.5 points from the same quarter a year ago, near the top of its range since 2020.
TME Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $1.3B | +5.8% |
| Q1 2026 | $1.2B | +6.7% |
| Q4 2025 | $1.2B | +3.8% |
| Q3 2025 | $1.3B | +21% |
| Q2 2025 | $1.3B | +18% |
| Q1 2025 | $1.1B | +8.7% |
| Q4 2024 | $1.1B | +8.2% |
| Q3 2024 | $1.1B | +6.8% |
TME's revenue has grown year over year for eight quarters in a row: $1.3B last quarter, up 5.8% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 34% | -1.3 points |
| Q1 2026 | 30% | -36 points |
| Q4 2025 | 34% | +1.5 points |
| Q3 2025 | 32% | +1.5 points |
| Q2 2025 | 35% | +4.6 points |
| Q1 2025 | 66% | +37 points |
| Q4 2024 | 32% | +7.4 points |
| Q3 2024 | 31% | +8.9 points |
TME has the edge over RDDT on profitability, with a higher operating margin.
RDDT Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q3 2026 | $362.6M | +98% |
| Q2 2026 | $260.7M | +135% |
| Q1 2026 | $311.2M | +146% |
| Q4 2025 | $263.6M | +196% |
| Q3 2025 | $183.1M | +161% |
| Q2 2025 | $110.8M | +308% |
| Q1 2025 | $126.6M | +333% |
| Q4 2024 | $89.2M | +$111.2M |
RDDT has the edge over TME on cash flow, with more consistent year-over-year improvement.
TME Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $429.8M | +75% |
| Q1 2026 | $350M | -7.4% |
| Q4 2025 | $0 | -100% |
| Q3 2025 | $552.7M | +70% |
| Q2 2025 | $245.8M | -44% |
| Q1 2025 | $378M | -6.2% |
| Q4 2024 | $324.3M | +19% |
| Q3 2024 | $324.9M | +50% |
TME's free cash flow has been positive every quarter for seven years: $1.3B over the past year, up 4.7% from the year before.
RDDT Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | -0.1% | -169K shares |
| 1 year | -0.4% | -868K shares |
| 3 years | +24% | +38.5M shares |
| 5 years | +24% | +38.5M shares |
RDDT has the edge over TME on shareholder dilution, with a more favorable share count trend.
| Quarter | Spent |
|---|---|
| Q3 2026 | $100.4M |
| Q2 2026 | $234.6M |
| Q1 2026 | $5M |
| Q4 2023 | — |
| Q3 2023 | — |
| Q2 2023 | — |
| Q1 2023 | $4.2M |
| Q4 2022 | — |
TME Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | 0% | -- |
| 1 year | +0.3% | +4.2M shares |
| 3 years | -1.8% | -28.7M shares |
| 5 years | -7.8% | -132M shares |
| Available history | -6.6% | -110M shares |
TME has 1.6B diluted shares, about the same as a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | — |
| Q1 2026 | — |
| Q4 2025 | $97.8M |
| Q3 2025 | — |
| Q2 2025 | — |
| Q1 2025 | — |
| Q4 2024 | $321.5M |
| Q3 2024 | — |
TME spent $98M buying back its own shares over the past year, down 70% from the year before.
RDDT Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q3 2026 | -1.5x | Net Cash |
| Q2 2026 | -1.9x | Net Cash |
| Q1 2026 | -2.2x | Net Cash |
| Q4 2025 | -2.1x | Net Cash |
| Q3 2025 | -3.3x | Net Cash |
| Q2 2025 | -5.0x | Net Cash |
| Q1 2025 | -13.1x | Net Cash |
RDDT has the edge over TME on leverage, with a lower net debt burden relative to earnings.
TME Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | -0.5x | Net Cash |
| Q1 2026 | -0.9x | Net Cash |
| Q4 2025 | -0.3x | Net Cash |
| Q3 2025 | -0.7x | Net Cash |
| Q2 2025 | -0.5x | Net Cash |
| Q1 2025 | -0.7x | Net Cash |
| Q4 2024 | -0.9x | Net Cash |
| Q3 2024 | -0.6x | Net Cash |
TME has more cash than debt.
RDDT Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 34.8 | Neutral |
| Stochastic | 6.5 | Oversold |
RDDT's weekly RSI is 35 (neutral) and its Stochastic is 6 (oversold).
TME Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 47.0 | Neutral |
| Stochastic | 58.8 | Neutral |
TME's weekly RSI is 47 (neutral) and its Stochastic is 59 (neutral).
RDDT PE vs Communication Services Sector
| Metric | RDDT | Sector median | Relative |
|---|---|---|---|
| PE | 20x | 16x | 23% above |
| PE % | 5 | 23 | 18 pts below |
RDDT is trading at 20x earnings, a 23% premium to the Communication Services sector's median of 16x, though its earnings don't support one.
TME PE vs Communication Services Sector
| Metric | TME | Sector median | Relative |
|---|---|---|---|
| PE | 11x | 16x | 34% below |
| PE % | 12 | 26 | 14 pts below |
TME has the edge over RDDT on valuation relative to its sector.
RDDT Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $130.6 | 24% below |
| 20 week MA | $151.7 | 34% below |
| 50 week MA | $165.0 | 40% below |
| 100 week MA | $167.1 | 40% below |
TME has stronger trend alignment. RDDT is above 0 of 4 weekly averages versus TME above 2 of 5.
TME Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $8.58 | 5.1% above |
| 20 week MA | $8.67 | 4% above |
| 50 week MA | $11.2 | 19% below |
| 100 week MA | $14.4 | 37% below |
| 200 week MA | $12.0 | 25% below |
TME has bounced recently, but its long-term trend is still down: it's above its 8- and 20-week averages, but 25% below its 200-week average.
RDDT Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2024 | $46.0 | $173.5 | +277% |
| 2025 | $173.5 | $225.8 | +30% |
| 2026 YTD | $225.8 | $99.6 | -56% |
RDDT has finished every year since 2024 higher, and it's down 56% so far in 2026.
TME Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $11.9 | $18.9 | +58% |
| 2021 | $18.9 | $6.50 | -66% |
| 2022 | $6.50 | $8.06 | +24% |
| 2023 | $8.06 | $9.01 | +12% |
| 2024 | $9.01 | $11.7 | +30% |
| 2025 | $11.7 | $17.6 | +50% |
| 2026 YTD | $17.6 | $9.02 | -49% |
TME has the edge over RDDT on returns for 2026, with the stronger performance.