Reddit (RDDT) jumped roughly 13–14% on Wednesday, July 1, closing near $197 after briefly tagging $201. A few forces stacked on top of each other:

1. AI data-licensing narrative reignited. Reports resurfaced that CEO Steve Huffman is pushing Google and OpenAI toward usage-based / "dynamic" pricing on 2027 renewals, rather than the flat fees in the current ~$50–60M/yr deals (about $203M in total licensing to date). With Reddit increasingly cited as a grounding source for LLM answers, the market is repricing the content library as mission-critical AI infrastructure. Needham's Laura Martin carries a $300 PT on this thesis, and Evercore's Mark Mahaney also has a $300 PT.

2. Strong risk-on tape for internet/AI names. Falling 10-year yields (down to ~4.41% on Iran-truce optimism) lifted long-duration growth stocks, and Meta/social peers rallied with it. Reddit's 2.07 beta amplified the move — it outperformed Meta by ~4 points and the communication-services ETF by ~11 points, even as QQQ dipped.

3. Improving ad fundamentals coming back into focus. After the April Q1 print (revenue +69% to $663M, ad revenue +74%, DAUq +17% to 126.8M, net income $204M, ARPU +44% to $5.23, active advertisers +75%), investors are looking ahead to the Q2 report due ~July 30 with guidance of $715–725M. Citizens and Tierra are hosting a July 7 digital-ad-trends call featuring RDDT alongside META, GOOGL, SNAP and APP — a credibility signal.

4. Short interest and options flow added fuel. Short interest rose 22.9% to 16.47M shares (~12% of float, 3.5 days to cover), and call options volume ran ~45% above average (~61K calls). With the stock still ~30% below its $282.95 52-week high and ~14% YTD, dip-buyers and squeeze-chasers piled in.

Context worth keeping in mind: RDDT is now at ~56x trailing earnings vs. Meta ~22x and Alphabet ~27x, and insiders have sold 244 of the last 248 open-market trades over six months. The move is fundamentally supported by ad/AI monetization, but the move-size is clearly amplified by sentiment, short positioning, and the stock's high beta.

You wanted two charts — PE ratio and market cap/net income TTM. I went ahead and built all three so you can see the full picture; the PE chart is essentially market cap ÷ net income TTM, so the relationship is visible side-by-side.

RDDT — Market Cap, Net Income (TTM), and PE (TTM)

Market Cap (daily, since IPO)

Net Income TTM (USD millions, trailing four reported quarters)

PE Ratio (TTM, daily)

Quick read on the numbers - Market cap ran from ~$7.5B at IPO (Mar 2024) to a peak around $47B in late 2025, and sits ~$38B today after today's 13–14% jump. - TTM net income went from –$484M (FY24, loss-making) to $707.5M as of Q1 2026 — a roughly $1.2B swing in 18 months. - Because earnings turned positive mid-2025, the PE line only has meaning from late 2025 onward. It prints in a wide band (~150x to ~250x early on) and has been compressing as TTM earnings catch up faster than the share price has risen. On today's $197 print with Q1 2026 TTM of $707.5M and ~192M diluted shares, TTM PE is roughly 53x — still very rich vs. Meta (~22x) and Alphabet (~27x), as flagged in this morning's news flow.