Reddit Vs. Chewy: The Better Buy Stock In 2026

Yahoo Finance··Read original
2▲1 ▼1Impact / 5
Summary · why it matters

Reddit's 69% revenue growth and 40% EBITDA margin dwarf Chewy's single-digit equivalents, exposing two fundamentally different business models. Reddit's confirmed AI licensing deals with Google and OpenAI create high-margin revenue streams Chewy's warehouse-bound model structurally cannot replicate. Reddit posted advertising revenue of $625 million, up 74% year over year, and total revenue of $663.41 million at a 40.1% adjusted EBITDA margin, while Chewy's revenue rose 7.7% to $3.357 billion with Autoship sales hitting $2.833 billion. Reddit's quarterly capex was just $1.09 million compared to Chewy's $37.7 million, and Reddit authorized a $1.0 billion buyback versus Chewy's $200 million in Q1. Reddit's next ARPU print remains the key catalyst to watch.

Impact on assets 4

Artificial Intelligence▲ · 2 stocks
Communication Services▲ · 1 stocks
Reddit, Inc.
RDDT
▲ PositiveDemandrelevance

Article highlights Reddit's strong revenue growth, high margins, and AI licensing deals with Google and OpenAI.

Consumer Discretionary▼ · 1 stocks
Chewy Inc
CHWY
▼ NegativeCompetitionrelevance

Article compares Chewy unfavorably to Reddit, highlighting lower growth and margins.

Off-coverage companies 1

OpenAIPrivate± Mixed
relevance

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