I was doing some eps and pe comparisons between Reddit, Pinterest, Meta, and Snap to put Reddit's numbers in perspective. Of course Reddit is looking good in comparison. Looking at the last 8 quarters for Reddit made me appreciate the growth so sharing here.

Diluted EPS

Last 4 Quarters (Q1 2026 - Q2 2025)	Previous 4 Quarters (Q1 2025 - Q2 2024)	% Growth
$1.01	$0.13	677%
$1.24	$0.36	244%
$0.80	$0.16	400%
$0.45	-$0.06	850%
Total $3.50	Total $0.59	493%

Sources: Q1, Q4, Q3, Q2

• Q1 2026 eps is already ~39% of 2025 eps
• Growth rate for last 4 quarters is at 493%

Needless to say, Q1 was huge and sets the tone for the year. I expected numbers to look good, but this actually changes my thoughts completely. If they don't fumble in Q2 I think we see major repricing of the stock by then if not sooner.

Looking back at my early predictions, I was way too pessimistic. Even my optimistic case only had Q1 diluted eps at $0.67. This is partly because revenue beat my expected by about $20 million, but the big surprise was expenses actually decreasing in Q1. If I'm not mistaken, this was the first time expenses went down Q to Q since Q2 2024. I would say that doesn't even count because it was only due to one time expenses realized at IPO in Q1 2024. I feel like this is big news that most didn't even talk about. I'll need to dive deeper into what happened here, but it looks like mainly marketing expense coming down.

So here are my updated predictions based on Q1. Still somewhat conservative on revenue growth, but optimistic on expenses staying light.

Scenario	Revenue	Expenses	Net Income	EPS
Pessimistic	$3,283	$2,110	$1,265	$6.14
Middle	$3,375	$2,025	$1,442	$7.00
Optimistic	$3,464	$2,025	$1,531	$7.43

I was thinking EPS for the year would come in somewhere around $4.5-$5 and that people suggesting $6+ were overly optimistic. Now it doesn't seem crazy as long as expenses stay in check. Management has already hinted at some increase due to SBC expense and potential marketing later in the year though, so who knows.

Price targets:
Trailing P/E is currently $167/$3.5 = 48
Using that, price target is somewhere around $294-$356
In my opinion 30 P/E is more realistic for what we've seen so price target $184-$223

All of this doesn't even factor in the opportunities coming up like S&P inclusion, licensing deals and other partnerships, buybacks, etc. Overall very bullish, but expecting turbulence as usual along the way.

This is not investment advice!