Reddit, Inc. (NYSE:RDDT) is a digital platform that connects users through communities based on shared interests. Founded in 2005 and headquartered in San Francisco, it operates under Advance Publications, Inc. Reddit allows users to engage in discussions and share content, making it a unique social media platform. It competes with other social media giants like Facebook and Twitter.
The recent trends in Reddit's target price show a positive shift. The average target price has increased to $197 over the past month, up from $191.75 last quarter. This suggests growing confidence in Reddit's performance. The company's stock has surged by 22% since December, outperforming the S&P 500 significantly, as highlighted by Andrew Boone from JMP Securities.
Looking at the yearly perspective, Reddit's target price has seen a substantial increase from $83.78 a year ago. This reflects a strong upward trend in analyst expectations. The company's third-quarter performance showed a 68% year-over-year revenue increase, with advertising revenue being a major contributor. This growth is supported by advancements in AI-powered translations and data licensing.
The implications of these trends are significant for investor sentiment. Analysts are optimistic about Reddit's future, likely due to increased user engagement and successful monetization strategies. Reddit's stock has increased over fourfold in the past year, highlighting its potential profitability. However, concerns about an unsustainable valuation and potential revenue growth deceleration remain.
Strategic developments have played a crucial role in Reddit's success. The introduction of AI data licensing added $33.2 million to its revenue, creating a new revenue stream. Despite risks like global liquidity issues, Reddit's consistent earnings beats and raised guidance have led to a new price target of $275, representing a 32% upside. However, Andrew Boone from JMP Securities maintains a price target of $84, indicating a cautious outlook.
Symbol | Price | %chg |
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035420.KS | 262500 | 1.9 |
035720.KS | 60000 | -1.5 |
0700.HK | 503 | -0.8 |
4689.T | 530.4 | 0 |
Reddit, Inc. (NYSE:RDDT) is under scrutiny by Levi & Korsinsky for potential violations of federal securities laws. This investigation follows a significant event on May 21, 2024, when Baird reduced its price target for Reddit from $140 to $120. Concerns arose over the impact of advanced AI capabilities from tech giants like Alphabet, which could threaten Reddit's user growth and site traffic.
The platform's primary use for obtaining answers to user questions is now being challenged by Google's new AI tool, which offers solutions with fewer clicks. This development led to a notable drop in Reddit's stock price, which fell by over 9%, closing at $95.85 per share on May 21, 2025. Levi & Korsinsky, a prominent securities litigation firm, is known for securing substantial settlements for shareholders.
On May 22, 2025, Reynolds Michelle Marie, Reddit's Chief Accounting Officer, sold 300 shares of Class A Common Stock at $96.71 each. After this transaction, she retains 44,706 shares. This sale occurred shortly after the stock's decline, raising questions about insider activity during a period of market volatility.
Currently, Reddit's stock price is $105.64, reflecting a slight increase of approximately 0.97% or $1.02. The stock has fluctuated between $103.16 and $106.71 today. Over the past year, Reddit's stock has seen a high of $230.41 and a low of $49.13, indicating significant volatility in its market performance.
Reddit's market capitalization is approximately $19.49 billion, with a trading volume of 3,063,466 shares on the NYSE. This reflects the company's substantial presence in the market, despite recent challenges and the ongoing investigation by Levi & Korsinsky.
Wells Fargo downgraded Reddit (NYSE:RDDT) from Overweight to Equal Weight and lowered its price target to $115 from $168, pointing to structural user engagement challenges and a less favorable advertising outlook. The company’s shares fell more than 4% intra-day today.
The bank flagged growing concerns that recent disruptions in user activity—particularly among logged-out users—are likely to be more permanent than previously expected. With Google accelerating AI integration in search, Reddit could see a meaningful decline in logged-out traffic, which currently accounts for 55% of its user base.
Although logged-out users contribute just 15% of ad revenue due to lower engagement and ad load, they serve as a critical funnel for acquiring logged-in users. As a result, Wells Fargo cut its three-year logged-in DAU growth forecast to 10% CAGR from 13%.
The downgrade also reflects concerns about Reddit’s ability to meet long-term advertising expectations, especially when compared to market giants like Meta. The firm now expects Reddit’s ad revenue and EBITDA in 2026 and 2027 to come in 6% and 14% below consensus, respectively.
Additionally, Reddit’s decision to prioritize community health over monetization may limit the upside of high-margin data licensing revenue.
Reddit (NYSE:RDDT) shares surged over 6% in pre-market today after the company posted first-quarter earnings and revenue that far exceeded analyst expectations, boosted by accelerating ad sales and strong user growth. The upbeat results, along with optimistic guidance, signaled early success from Reddit’s recent investments in advertising infrastructure and AI capabilities.
The company reported adjusted earnings of $0.13 per share, easily topping the $0.01 consensus estimate. Revenue came in at $392.4 million, representing a 61% year-over-year surge and beating forecasts of $369.3 million.
Advertising, Reddit’s primary revenue driver, matched overall growth with $358.6 million in sales. Daily active uniques (DAUq)—a key measure of engagement—rose 31% to 108.1 million, reflecting the platform’s growing traction among users seeking community-driven content.
Reddit also swung to profitability, reporting net income of $26.2 million compared to a loss of $575.1 million in the same quarter last year.
Looking ahead, the company expects second-quarter revenue between $410 million and $430 million, comfortably above the $392.9 million Wall Street projection. Adjusted EBITDA is forecasted between $110 million and $130 million, signaling continued confidence in ad monetization momentum.
Reddit (NYSE:RDDT) shares surged over 6% in pre-market today after the company posted first-quarter earnings and revenue that far exceeded analyst expectations, boosted by accelerating ad sales and strong user growth. The upbeat results, along with optimistic guidance, signaled early success from Reddit’s recent investments in advertising infrastructure and AI capabilities.
The company reported adjusted earnings of $0.13 per share, easily topping the $0.01 consensus estimate. Revenue came in at $392.4 million, representing a 61% year-over-year surge and beating forecasts of $369.3 million.
Advertising, Reddit’s primary revenue driver, matched overall growth with $358.6 million in sales. Daily active uniques (DAUq)—a key measure of engagement—rose 31% to 108.1 million, reflecting the platform’s growing traction among users seeking community-driven content.
Reddit also swung to profitability, reporting net income of $26.2 million compared to a loss of $575.1 million in the same quarter last year.
Looking ahead, the company expects second-quarter revenue between $410 million and $430 million, comfortably above the $392.9 million Wall Street projection. Adjusted EBITDA is forecasted between $110 million and $130 million, signaling continued confidence in ad monetization momentum.
Reddit, trading under the symbol (NYSE:RDDT), is a prominent social media platform known for its diverse user-generated content. As a key player in the digital advertising space, Reddit competes with giants like Meta and Snap. The company is set to release its first-quarter 2025 earnings on May 1, with analysts estimating an earnings per share (EPS) of $0.03 and projected revenue of $369.68 million.
Reddit anticipates revenues between $360 million and $370 million, marking a significant year-over-year increase of 48% to 52%. The Zacks Consensus Estimate is slightly higher at $372.09 million, suggesting a 53.15% increase from the previous year. This growth reflects Reddit's strong performance in digital advertising, a crucial indicator of consumer sentiment.
Reddit has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 194.08%. This indicates that the company has been performing better than expected, despite its current unprofitability. The earnings per share are expected to be 3 cents, which has risen by a penny over the past month.
Reddit's financial metrics reveal a mixed picture. The price-to-sales ratio stands at about 15.24, suggesting that investors are willing to pay $15.24 for every dollar of sales. The enterprise value to sales ratio is slightly lower at 14.83, indicating a relatively high valuation. The enterprise value to operating cash flow ratio is around 86.82, suggesting a high valuation compared to its cash flow.
The company's debt-to-equity ratio is quite low at about 0.013, indicating minimal reliance on debt financing. Additionally, the current ratio is strong at approximately 12.63, suggesting that Reddit has a robust ability to cover its short-term liabilities with its short-term assets. Despite these strengths, Reddit faces challenges from rising competition and a premium valuation, which could make it a risky investment ahead of the earnings announcement.
Reddit, trading under the symbol (NYSE:RDDT), is a prominent social media platform known for its diverse user-generated content. As a key player in the digital advertising space, Reddit competes with giants like Meta and Snap. The company is set to release its first-quarter 2025 earnings on May 1, with analysts estimating an earnings per share (EPS) of $0.03 and projected revenue of $369.68 million.
Reddit anticipates revenues between $360 million and $370 million, marking a significant year-over-year increase of 48% to 52%. The Zacks Consensus Estimate is slightly higher at $372.09 million, suggesting a 53.15% increase from the previous year. This growth reflects Reddit's strong performance in digital advertising, a crucial indicator of consumer sentiment.
Reddit has consistently exceeded the Zacks Consensus Estimate in the last four quarters, with an average surprise of 194.08%. This indicates that the company has been performing better than expected, despite its current unprofitability. The earnings per share are expected to be 3 cents, which has risen by a penny over the past month.
Reddit's financial metrics reveal a mixed picture. The price-to-sales ratio stands at about 15.24, suggesting that investors are willing to pay $15.24 for every dollar of sales. The enterprise value to sales ratio is slightly lower at 14.83, indicating a relatively high valuation. The enterprise value to operating cash flow ratio is around 86.82, suggesting a high valuation compared to its cash flow.
The company's debt-to-equity ratio is quite low at about 0.013, indicating minimal reliance on debt financing. Additionally, the current ratio is strong at approximately 12.63, suggesting that Reddit has a robust ability to cover its short-term liabilities with its short-term assets. Despite these strengths, Reddit faces challenges from rising competition and a premium valuation, which could make it a risky investment ahead of the earnings announcement.
Reddit (NYSE:RDDT) received a reaffirmed Buy rating and $220 price target from Needham analysts, even as the stock has fallen around 40% since its February 12 earnings report.
In a recent update, Needham shared a detailed look at shifting investor sentiment throughout Q1 2025, comparing it to previous quarters. The analysts noted a clear evolution in investor concerns and optimism, with little repetition of issues between quarters, signaling a fast-changing perception of the company.
Despite the stock’s sharp decline, Needham increased its profitability forecasts for both 2025 and 2026, based on updated modeling. Reddit's revenue growth outlook remains intact, with the firm continuing to project 30% year-over-year growth in both years—the fastest among the companies Needham tracks.
The note also includes a deep dive into bull vs. bear narratives from past quarters, highlighting how investor debates have shifted over time. While Reddit faces ongoing scrutiny amid its post-IPO performance, Needham sees the stock’s current levels as offering a compelling entry point, given the platform’s strong growth potential and improving financial trajectory.