RDDT
Reddit, Inc.
RDDT offers stronger fundamentals, but that advantage does not outweigh its weaker overall profile.
WMG
Warner Music Group Corp.
WMG has the edge over RDDT overall, supported by lower modeled downside and stronger valuation.
RDDT Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Strong | |
| Strong |
RDDT's revenue, profitability, cash flow and balance sheet are all currently healthy.
WMG Fundamentals
| Metric | Status |
|---|---|
| Healthy | |
| Strong | |
| Healthy | |
| Stable |
WMG's revenue, profitability and cash flow are currently healthy, and its balance sheet 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's PE is 20x, but its earnings don't support one, so it isn't a reliable read right now.
WMG PE Valuation
| Level | PE | Price | Vs current |
|---|---|---|---|
| Forward | 18x | $31.67 | — |
| Current | 25x | $31.67 | — |
| Cheap | 31x | $39.57 | +25% |
| Fair | 36x | $46.67 | +47% |
| Expensive | 44x | $57.23 | +81% |
Historical ranges are pointers, not guarantees.
WMG has the edge over RDDT in the historical PE scenario, which offers more potential upside but is not a forecast.
RDDT Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Strong growth | |
| Strongly improving | |
| Moderate | |
| Low |
Analysts expect strong earnings and revenue growth for RDDT, with profitability improving. However, they disagree widely on these estimates.
WMG Forward outlook
| Metric | Outlook |
|---|---|
| Strongly improving | |
| Strong growth | |
| Growth | |
| Strongly improving | |
| Limited | |
| High |
Analysts expect earnings and revenue growth for WMG, with profitability improving.
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 |
WMG has the stronger earnings trend. Trailing diluted EPS is down 39% for RDDT versus WMG up 126%.
WMG Earnings Per Share
| Quarter | TTM EPS | YoY |
|---|---|---|
| Forward | $1.72 | +33% |
| Q2 2026 | $1.29 | +126% |
| Q1 2026 | $0.87 | +1.2% |
| Q4 2025 | $0.59 | -39% |
| Q3 2025 | $0.70 | -15% |
| Q2 2025 | $0.57 | -45% |
| Q1 2025 | $0.86 | -16% |
| Q4 2024 | $0.97 | +6.6% |
| Q3 2024 | $0.82 | -3.5% |
WMG earned $1.29 per share over the past year, up 126% from the year before.
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 WMG on sales, with more consistent year-over-year improvement.
| 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 has the edge over WMG on profitability, with a higher operating margin.
WMG Quarterly Revenue
| Quarter | Revenue | YoY |
|---|---|---|
| Q2 2026 | $1.9B | +10% |
| Q1 2026 | $1.7B | +17% |
| Q4 2025 | $1.8B | +10% |
| Q3 2025 | $1.9B | +15% |
| Q2 2025 | $1.7B | +8.7% |
| Q1 2025 | $1.5B | -0.7% |
| Q4 2024 | $1.7B | -4.7% |
| Q3 2024 | $1.6B | +2.8% |
WMG's revenue has grown year over year for five quarters in a row: $1.9B last quarter, up 10% from the same quarter a year ago.
| Quarter | Margin | YoY |
|---|---|---|
| Q2 2026 | 16% | +6.3 points |
| Q1 2026 | 16% | +4.3 points |
| Q4 2025 | 18% | +4.9 points |
| Q3 2025 | 7.7% | -1.1 points |
| Q2 2025 | 10% | -3.3 points |
| Q1 2025 | 11% | +3.4 points |
| Q4 2024 | 13% | -7.4 points |
| Q3 2024 | 8.8% | -4.6 points |
WMG's operating margin was 16% last quarter, up 6.3 points from the same quarter a year ago.
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 WMG on cash flow, with more consistent year-over-year improvement.
WMG Free Cash Flow
| Quarter | Free cash flow | YoY |
|---|---|---|
| Q2 2026 | $114M | +1529% |
| Q1 2026 | $107M | +$153M |
| Q4 2025 | $390M | +32% |
| Q3 2025 | $203M | -1.9% |
| Q2 2025 | $7M | -96% |
| Q1 2025 | -$46M | +$34M |
| Q4 2024 | $296M | +44% |
| Q3 2024 | $207M | -13% |
WMG generated $814M in free cash flow over the past year, up 75% 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 WMG 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 | — |
WMG Total Shares
| Period | Change % | Net change |
|---|---|---|
| Quarterly | +1% | +5.4M shares |
| 1 year | +0.6% | +3.2M shares |
| 3 years | +1.6% | +8.5M shares |
| 5 years | +2% | +10.1M shares |
| Available history | +4.5% | +22.4M shares |
WMG has 524M diluted shares, up 0.6% from a year ago.
| Quarter | Spent |
|---|---|
| Q2 2026 | $48M |
| Q1 2026 | $22M |
| Q4 2025 | $26M |
| Q3 2025 | $13M |
| Q2 2025 | $1M |
| Q1 2025 | $17M |
| Q4 2024 | $2M |
| Q3 2024 | — |
WMG spent $109M buying back its own shares over the past year, about five times what it spent 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 WMG on leverage, with a lower net debt burden relative to earnings.
WMG Net Leverage
| Quarter | Net Leverage | Status |
|---|---|---|
| Q2 2026 | 3.0x | Moderate |
| Q1 2026 | 3.6x | Elevated |
| Q4 2025 | 4.2x | High |
| Q3 2025 | 4.0x | Elevated |
| Q2 2025 | 4.3x | High |
| Q1 2025 | 3.5x | Elevated |
| Q4 2024 | 3.0x | Moderate |
| Q3 2024 | 3.3x | Elevated |
WMG's net debt is about 3.0 years of its operating earnings (EBITDA), down from 4.3 years a year ago.
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).
WMG Weekly Momentum
| Metric | Value | Status |
|---|---|---|
| RSI | 60.0 | Neutral |
| Stochastic | 80.8 | Overbought |
WMG's weekly RSI is 60 (neutral) and its Stochastic is 81 (overbought).
RDDT PE vs Communication Services Sector
| Metric | RDDT | Sector median | Relative |
|---|---|---|---|
| PE | 20x | 16x | 23% above |
| PE % | 5 | 23 | 18 pts below |
RDDT has the edge over WMG on valuation relative to its sector.
WMG PE vs Communication Services Sector
| Metric | WMG | Sector median | Relative |
|---|---|---|---|
| PE | 25x | 16x | 49% above |
| PE % | 2 | 25 | 23 pts below |
WMG is trading at 25x earnings, a 49% premium to the Communication Services sector's median of 16x.
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 |
WMG has stronger trend alignment. RDDT is above 0 of 4 weekly averages versus WMG above 5 of 5.
WMG Weekly Moving Averages
| Moving average | MA price | Relative |
|---|---|---|
| 8 week MA | $29.8 | 6.2% above |
| 20 week MA | $28.5 | 11% above |
| 50 week MA | $28.9 | 9.6% above |
| 100 week MA | $29.9 | 6% above |
| 200 week MA | $30.8 | 2.9% above |
WMG has climbed back above all five of its weekly moving averages, and it's now 2.9% above 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.
WMG Yearly ROI
| Year | Start price | End price | ROI |
|---|---|---|---|
| 2020 | $29.9 | $37.5 | +25% |
| 2021 | $37.5 | $43.5 | +16% |
| 2022 | $43.5 | $35.6 | -18% |
| 2023 | $35.6 | $35.8 | +0.5% |
| 2024 | $35.8 | $31.5 | -12% |
| 2025 | $31.5 | $30.0 | -4.8% |
| 2026 YTD | $30.0 | $31.7 | +5.7% |
WMG has the edge over RDDT on returns for 2026, with the stronger performance.