Munger Mode rating: 2 out of 5 — Sell. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
Reddit is a collection of roughly one hundred thousand online communities — forums, in the old language — where people gather under pseudonyms to argue about everything from index funds to sourdough starters. The company makes money two ways: advertising (95% of revenue, $761.6 million in Q2 2026) sold against those conversations, and "other revenue" ($43.3 million), which is mostly licensing its twenty-year archive of human conversation to AI companies — Google and OpenAI being the two large customers — plus a small premium subscription. In the quarter ended June 30, 2026, Reddit averaged 130.3 million daily active uniques (up 18% year over year) and earned $6.18 of revenue per daily user per quarter (up 36%). The United States produced 79% of revenue.
Recent filings analysed: 10-Q (2026-07-31), 8-K (2026-07-30), 10-K (2026-02-06), 10-Q (2025-10-31).
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