Updated
Updated · Yahoo Finance · Aug 22
Reddit Tops Rigetti as 2026 Stock Pick on $2.2 Billion Revenue and 24.1% Margin
Updated
Updated · Yahoo Finance · Aug 22

Reddit Tops Rigetti as 2026 Stock Pick on $2.2 Billion Revenue and 24.1% Margin

2 articles · Updated · Yahoo Finance · Aug 22

Summary

  • Reddit emerges as the stronger 2026 high-growth stock in the comparison, backed by a profitable ad-and-data business rather than Rigetti’s still-speculative quantum hardware bet.
  • In 2025, Reddit posted $2.2 billion in revenue, up 69.4%, with $529.7 million in net income, a 24.1% margin and $684.2 million in free cash flow.
  • Its balance sheet adds support: Reddit had no debt, a current ratio of 11.6x, and revenue streams from advertising plus AI data licensing, including deals with Alphabet.
  • Risks remain on both sides. Reddit’s top 10 advertisers supplied about 21% of 2025 revenue, while Rigetti relied on government contracts for roughly 90% of sales.
  • Rigetti’s upside rests on future execution, including a planned 108-qubit system for international partners, but the report frames that promise as less proven than Reddit’s established scale.

Insights

Are investors ignoring Reddit's massive stock-based compensation while underestimating the strategic national value of Rigetti's quantum chips?
Will AI search engines destroy Reddit's ad revenue before its lucrative data licensing deals even face renewal?
Can Rigetti's government-funded quantum hardware survive a commercial market dominated by rapidly advancing trapped-ion rivals?