• Reddit (NYSE:RDDT) approved a US$1b share repurchase program, signaling a major capital allocation decision.
• The company plans to stop reporting logged-in vs. logged-out user metrics starting in 2026, citing platform changes.
• Both moves reshape how Reddit manages its balance sheet and how investors will track user engagement over time.

Reddit runs a large online discussion platform that connects users around topic based communities, with revenue mainly tied to advertising and emerging data licensing deals. Across social media and community platforms, companies are rethinking how they communicate user engagement as formats evolve and as AI tools become more central. In that context, a US$1b buyback and a shift in disclosure practices put Reddit's capital and reporting choices firmly in focus for investors.

For you as a shareholder or prospective investor, the key questions are how this repurchase pool is deployed and what replaces the current user metrics in 2026. The decision to retire the logged-in vs. logged-out split means you may need to rely more on alternative indicators of Reddit's reach and activity once the new reporting framework is in place.

Stay updated on the most important news stories for Reddit by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Reddit.

Quick Assessment

• ⚖️ Price vs Analyst Target: At US$151.05 versus a US$252.39 analyst target, the price sits about 40% below consensus, which points to a wide gap in expectations.
• ✅ Simply Wall St Valuation: Simply Wall St currently views Reddit as trading about 62% below its estimated fair value, flagging a sizable valuation gap.
• ❌ Recent Momentum: The 30 day return of roughly 40% decline shows recent momentum has been weak despite the buyback announcement.

Check out Simply Wall St's in depth valuation analysis for Reddit.

Key Considerations

• 📊 A US$1b repurchase plan can support per share metrics, so you may want to watch how quickly Reddit uses this authorization and at what price levels.
• 📊 With logged in versus logged out metrics ending in 2026, keep an eye on whatever new engagement measures management introduces and how consistently they are reported.
• ⚠️ Once the current user split disappears, it could become harder for you to gauge the quality of traffic and advertiser value if the replacement metrics lack detail or history.

Dig Deeper

For the full picture including more risks and rewards, check out the complete Reddit analysis.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.