There will be a deluge of earnings season headlines this week. Most of the “Magnificent Seven” stocks will be reporting in the next couple of days, but I’m keeping an even closer eye on three other companies stepping up with fresh financials.
Reddit(NYSE: RDDT), Royal Caribbean(NYSE: RCL), and Roku(NASDAQ: ROKU) are the three Rs on my radar this week. They all have telltale earnings to announce. Let’s see what they have to prove, and what’s at stake for investors.
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How well Reddit is holding up heading into Thursday night’s first-quarter results depends on where you draw the starting line. Shares of the company behind the popular namesake “community of communities” have risen 38% over the past year, but they’ve also shed a third of their value so far in 2026. If you want an even shorter starting line with a different outcome, Reddit stock is up 30% since bottoming out last month.
Fundamentally speaking, Reddit is in great shape. Revenue soared 70% in its latest quarter, despite a more modest 19% increase in daily active unique users over the past year. The reasons for the welcome disparity are the platform’s stickiness and improving monetization.
Three months ago, Reddit’s guidance for the numbers it will deliver later this week was calling for revenue of $600 million at the midpoint. That’s a 53% increase, its weakest year-over-year quarterly growth in two years.
The news gets better on the bottom line, where analysts see adjusted earnings more than quadrupling. A cherry on top of that already tasty sundae: Reddit has beaten analyst estimates by 33% ore better for more than a year.
Reddit is in a good place. It’s not vulnerable to the same AI headwinds that have taken down other former highfliers. If anything, it’s a beneficiary. A couple of the leading AI platforms are paying Reddit for access to its growing content to train their models.
The stock is trading for 38 times this year’s earnings and a reasonable 27 times next year’s profit target. I already covered how Reddit consistently exceeds analyst forecasts, so these multiples are likely to be even lower in the rearview mirror.
The world’s largest cruise line operator by market cap is trading at even lower multiples than Reddit. You can come aboard Royal Caribbean for a mere 15 times forward earnings. Sure, it’s growing is business a lot slower than Reddit, but that’s a compelling valuation for a niche leader in an expanding industry.
Cruise line stocks are cheap, but there are reasons for that. The recent pop in fuel costs will pinch the industry, with many passengers having booked their upcoming sailings last year at lower prices. It also doesn’t help that the war with Iran has heightened the dangers of sea travel.
Royal Caribbean should come through with a solid first quarter. Wall Street pros have been paring back near-term projections, and it wouldn’t be a surprise if advanced booking activity has cooled since the company’s last update.
The best performer among these three stocks over the past year is Roku stock. Shares of the streaming video on TV pioneer are up nearly 80% over the past year, with a quarter of that jump happening just over the past month.
Roku’s turnaround is complete. The company is profitable again. It consistently delivers healthy free cash flow and double-digit revenue growth, and its global audience continues to grow. Earlier this month, Roku announced that it now reaches 100 million households. And despite competing against some of the Magnificent Seven tech titans, it remains the leader in its field, accounting for 44% of connected TV consumption in the United States.
Like Reddit, Roku has momentum on its side. Earnings estimates keep inching higher, the platform is getting even stickier, and, in recent months, it has struck smart deals to expand its ad inventory through two of its largest competitors. The one thing to watch here is that the stock’s market-thumping gains over the past year can pull back a bit if there’s not a blowout performance after Thursday’s market close.
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Rick Munarriz has positions in Reddit, Roku, and Royal Caribbean Cruises. The Motley Fool has positions in and recommends Reddit and Roku. The Motley Fool has a disclosure policy.
