Why did RDDT stock rise after hours?

Shares moved higher after Reddit beat Q4 estimates with EPS of $1.24 and revenue of $726 million, and guided Q1 sales to $595 million to $605 million, above the $577 million consensus. A new $1 billion buyback also supported sentiment by signaling management confidence and potential dilution offset.

What does Reddit’s $1 billion buyback mean for investors?

At a market cap near $28.6 billion, the authorization equals roughly 3.5% of equity value. At about $165 per share, Reddit could retire around 6 million shares. The plan can offset stock grants, support EPS over time, and provide downside cushioning if deployed during pullbacks.

Is RDDT stock expensive after the earnings pop?

The stock trades near 15 times sales and about 83 times trailing earnings, which is rich versus slower peers. That premium assumes strong growth and improving margins. If Reddit keeps beating and raising, the multiple can hold. If growth cools, valuation could compress and increase downside risk.

What should I watch in Reddit’s next quarter?

Focus on ad pricing and conversion, user growth and time spent, and contributions from data licensing. Track revenue versus the $595 million to $605 million guide and any update on costs. Cash flow and margin signals will help gauge how fast Reddit can fund growth and share repurchases.

Global Market Insights

RDDT Stock Today: Q4 Beat, Strong Guide, $1B Buyback – February 05

ByDanny Kontos February 6, 2026February 6, 2026

RDDT stock gained after hours as Reddit (RDDT) posted Q4 EPS of $1.24 and revenue of $726 million, both above expectations. Management guided Q1 sales to $595 million to $605 million, ahead of the $577 million consensus. The board approved a $1 billion share buyback. Revenue rose about 70% year over year, pointing to strong ad demand and new data deals. We break down what this means for Reddit stock, valuation, trend signals, and key risks for US investors.