Reddit Started With an Underperform Rating at Bernstein

Reddit Inc (NYSE:RDDT) is set to release its third-quarter earnings on October 30, 2025, after the market closes. The company, known for its online community platform, has been on a growth trajectory since its IPO in 2024. Reddit's focus on advertising, AI-driven innovations, and global expansion has positioned it as a strong player in the digital advertising space.

Analysts estimate Reddit's earnings per share (EPS) to be $1.04, with projected revenue of approximately $547 million. This aligns with Reddit's guidance, which suggests third-quarter revenue will fall between $535 million and $545 million. The Zacks Consensus Estimate is slightly higher at $549.69 million, indicating a year-over-year growth of 57.80%. This growth is driven by Reddit's advertising strength, attributed to automation, AI tools, and dynamic product ads. Reddit's financial performance has consistently exceeded expectations, with the company surpassing revenue estimates for six consecutive quarters. 

Jeffries analysts anticipate that Reddit's results may surpass Wall Street expectations, highlighting strong advertising trends and growth in performance products. Reddit's valuation metrics reflect its growth potential.

The company has a high price-to-earnings (P/E) ratio of approximately 174.10, indicating a high valuation relative to its earnings. Its price-to-sales ratio stands at about 22.59, suggesting investors are willing to pay a premium for each dollar of sales. Despite these high valuations, Reddit maintains a strong liquidity position with a current ratio of approximately 12. The company's low debt-to-equity ratio of 0.01 suggests minimal reliance on debt financing, which is favorable for its financial health. Additionally, Reddit's enterprise value to sales ratio is 22.16, reflecting its overall valuation in relation to revenue. The enterprise value to operating cash flow ratio is 92.31, indicating a high multiple of cash flow. Despite a modest earnings yield of 0.57%, Reddit's growth prospects remain strong.

• Goldman Sachs has increased the price target for Reddit Inc. (NYSE:RDDT) to $236, indicating a 20.19% potential upside.
• Reddit's stock outperformed major indices with a recent close at $203.68, despite a 21.92% decline over the past month.
• The company is expected to report a significant earnings per share (EPS) growth of 225% in its upcoming financial results on October 30, 2025.

Reddit Inc. (NYSE:RDDT), a leading social media platform celebrated for its diverse user-generated content and vibrant community discussions, has recently been in the spotlight following Goldman Sachs' optimistic new price target of $236. This represents a 20.19% increase from its current stock price of $196.35, highlighting confidence in Reddit's future performance.

On the trading front, Reddit's stock demonstrated resilience by closing at $203.68, marking a 2.58% increase from its previous close. This performance notably outpaced major indices such as the S&P 500, which gained 1.56%, and the Dow, which rose by 1.29%. The Nasdaq, known for its tech-centric portfolio, also saw an increase of 2.21%. However, it's important to note that Reddit's shares have experienced a 21.92% decline over the past month, underperforming the Computer and Technology sector's 1.06% increase and the S&P 500's 0.41% rise.

Investors are keenly awaiting the release of Reddit's financial results on October 30, 2025. Expectations are set high with an anticipated earnings per share (EPS) of $0.52, which would signify a 225% growth from the same quarter last year. Additionally, the Zacks Consensus Estimate projects Reddit's revenue to reach $549.69 million, a 57.8% increase from the previous year.

As of now, Reddit's stock price stands at $196.35, reflecting a decrease of 3.60% or $7.33. The stock has seen fluctuations, with today's trading ranging between a low of $194.83 and a high of $205.52. Over the past year, Reddit has reached a high of $282.95 and a low of $73.59. The company's market capitalization is approximately $36.75 billion, with a trading volume of 3,392,395 shares on the NYSE.

• Colin Sebastian from Robert W. Baird sets a new price target for Reddit (NYSE:RDDT) at $240, indicating a potential increase of 1.83%.
• Reddit's stock has seen a notable 11.7% increase over the past month, outperforming the Zacks S&P 500 composite's 2.7% rise.
• The stock's current price is $230.70, with a year-high of $282.95 and a low of $64.52, showcasing significant volatility.

On September 25, 2025, Colin Sebastian from Robert W. Baird set a new price target for Reddit (NYSE:RDDT) at $240. At the time, Reddit's stock was priced at $235.69, indicating a potential increase of 1.83%. This target was a significant jump from the previous $177, as highlighted by TheFly. Reddit, a major player in the Internet - Software industry, has been gaining traction among investors.

Reddit's stock has been performing well, with a notable 11.7% increase over the past month. This is impressive compared to the Zacks S&P 500 composite's 2.7% rise. The Internet - Software industry, which includes Reddit, saw a 3.6% gain in the same period. This strong performance suggests positive investor sentiment and potential for future growth.

Despite the recent positive trend, Reddit's stock price has seen some fluctuations. Currently, RDDT is priced at $230.70, a decrease of 2.12% or -$4.99. The stock has varied between $223.50 and $230.77 today. Over the past year, it reached a high of $282.95 and a low of $64.52, indicating significant volatility.

Reddit's market capitalization stands at approximately $43.18 billion, reflecting its substantial presence in the market. The trading volume for RDDT is 1,692,167 shares, showing active investor interest. While media releases can cause short-term price changes, long-term investment decisions are influenced by fundamental factors like earnings projections, as emphasized by Zacks.

Reddit (NYSE:RDDT) shares rallied 17% on Friday after the social media platform reported second-quarter results that topped forecasts and issued a strong revenue outlook for the third quarter.

The company posted earnings of $0.45 per share, crushing analyst expectations of $0.19. Revenue soared 78% year-over-year to $500 million, well ahead of the $426 million forecast.

Advertising remained Reddit’s primary revenue driver, increasing 84% to $465 million and accounting for over 93% of total sales. Revenue from data licensing and other streams rose 24% to $35 million, supported by AI-training partnerships.

Daily Active Uniques (DAUq) reached 110.4 million, up 21% year-over-year and slightly above the prior quarter’s 108.1 million. Gross margin expanded to 90.8%, while adjusted EBITDA climbed to $167 million, with margin rising to 33% from 14%.

“Reddit is built for this moment,” said CEO Steve Huffman, emphasizing a focus on global scaling, sustainability, and platform trust.

Reddit projected third-quarter revenue between $535 million and $545 million, well above the $473.1 million consensus, lifting investor sentiment.

• Eric Sheridan from Goldman Sachs has set a new price target of $212 for Reddit (NYSE:RDDT), indicating a potential upside of about 32%.
• Reddit's stock has shown significant volatility, with a yearly high of $230.41 and a low of $49.13.
• The company faces challenges in advertising growth and user engagement amidst the evolving AI-driven search technologies.

On August 1, 2025, Eric Sheridan from Goldman Sachs set a price target of $212 for Reddit (NYSE:RDDT). At the time, the stock was trading at $160.59, suggesting a potential upside of about 32%. Reddit, a popular social media platform, is known for its user-generated content and community-driven discussions. It competes with other tech giants like Amazon and Coinbase, which are also navigating significant industry changes.

Reddit's current stock price of $160.59 reflects a 7.54% increase, or $11.26, from previous levels. The stock has seen fluctuations today, with a low of $154.83 and a high of $162.86. Over the past year, RDDT has experienced a high of $230.41 and a low of $49.13, indicating significant volatility. The company's market capitalization is approximately $29.63 billion, highlighting its substantial presence in the market.

Reddit faces challenges in advertising growth and user engagement, as highlighted by the evolving landscape of AI-driven search technologies. These factors could impact its future performance and stock valuation. Despite these challenges, the stock's recent increase and trading volume of 16,087,701 shares suggest continued investor interest.

In the broader tech industry, cloud providers are fiercely competing for market share. Microsoft's Azure business, for instance, is experiencing a notable surge. Meanwhile, in the cryptocurrency sector, equities and ETFs are introducing new trading dynamics. These industry changes could influence Reddit's strategic decisions and market positioning in the coming months.

• Goldman Sachs updated its rating for Reddit (NYSE:RDDT) to Neutral, suggesting a hold position on the stock.
• The stock price of Reddit is currently $160.59, reflecting a 7.54% increase and showcasing investor confidence despite challenges in advertising growth and user engagement.
• Reddit's market capitalization stands at approximately $29.63 billion, with a trading volume of 16,087,701 shares, indicating significant investor interest amidst the evolving social media landscape.

On August 1, 2025, Goldman Sachs updated its rating for Reddit (NYSE:RDDT) to Neutral, maintaining its previous grade. The recommendation is to hold the stock. At the time of this announcement, the stock price was $160.59. Reddit, a popular social media platform, is known for its user-generated content and community-driven discussions. It competes with other social media giants like Facebook and Twitter.

Reddit is currently facing challenges related to advertising growth and user engagement. The stock for RDDT is priced at $160.59, reflecting an increase of 7.54% with a change of $11.26. This suggests that despite the challenges, investors still see potential in the company's ability to navigate these issues. The stock has fluctuated between a low of $154.83 and a high of $162.86 today.

The company has a market capitalization of approximately $29.63 billion, indicating its significant presence in the social media industry. Over the past year, RDDT has reached a high of $230.41 and a low of $49.13, showing considerable volatility. This volatility may be attributed to the evolving landscape of social media and the impact of AI-driven search technologies.

Today's trading volume for RDDT stands at 16,087,701 shares, highlighting active investor interest. As the industry undergoes significant changes, with competitors like Amazon and Coinbase also releasing earnings, Reddit's ability to adapt will be crucial. The cloud sector, for instance, is seeing providers like Microsoft's Azure business experience a notable surge, which could influence Reddit's strategies moving forward.

• Morgan Stanley maintains an "Overweight" rating for NYSE:RDDT, raising its price target from $154 to $170.
• Reddit faces a securities class action lawsuit for investors who bought securities between October 29, 2024, and May 20, 2025.
• The stock price of RDDT shows a 4.01% increase, with a current price of $148.24, indicating active investor interest and market volatility.

Reddit, Inc. (NYSE:RDDT) is a social media platform known for its diverse user-generated content and community-driven discussions. It competes with other social media giants like Facebook and Twitter. On July 20, 2025, Morgan Stanley maintained its "Overweight" rating for RDDT, indicating confidence in the stock's potential. The stock price at the time was $148.24.

Morgan Stanley also raised its price target for Reddit from $154 to $170, as highlighted by TheFly. This suggests that the firm expects the stock to perform well in the future. Despite this positive outlook, Reddit is currently involved in a securities class action lawsuit. Rosen Law Firm is urging investors who bought Reddit securities between October 29, 2024, and May 20, 2025, to seek legal counsel before August 18, 2025.

The stock price of RDDT is currently $148.24, showing a 4.01% increase or $5.72. Today, the stock has fluctuated between $138.11 and $149.09. Over the past year, RDDT has seen a high of $230.41 and a low of $49.13. This volatility reflects the dynamic nature of the stock market and investor sentiment.

Reddit's market capitalization is approximately $27.35 billion, indicating its significant presence in the social media industry. The trading volume for RDDT today is 5,988,612 shares, showing active investor interest. Despite the ongoing legal issues, the stock's performance and Morgan Stanley's positive outlook suggest potential growth for Reddit.