Reddit Extends Gains, Reaching All-Time High

Reddit (NYSE:RDDT) shares rose more than 15% intra-day today, reaching a new all-time high. Following a strong 30% climb on Monday, the social media platform maintained its momentum among investors since its initial public offering (IPO) on the New York Stock Exchange last week.

The stock, initially priced at $34 during its IPO, concluded Monday's session at $59.80. Reddit's debut brought in roughly $750 million from the sale of shares by the company and its existing shareholders. On the day of its debut, the company’s shares experienced a 48% upsurge, rewarding its community of moderators and users—collectively known as Redditors—who participated in the IPO through a directed-share program, a strategy previously adopted by companies like Airbnb and Rivian.
Reddit, Inc. View
Symbol Price %chg
035420.KS 188700 -5.51
035720.KS 37000 -3.65
0700.HK 498 -0.08
4689.T 530 -3.02
RDDT Ratings Summary
RDDT Quant Ranking
Related Analysis

Reddit Soars 6% on Blowout Q1 Earnings and Bullish Ad Outlook

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's Upcoming Earnings Report: A Deep Dive into Financials and Market Position

  • Reddit is set to release its Q1 2025 earnings with an estimated EPS of $0.03 and projected revenue of $369.68 million.
  • The company anticipates a significant year-over-year revenue increase of 48% to 52%, outpacing the Zacks Consensus Estimate.

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.

Needham Reaffirms Buy on Reddit, Sees Upside Despite 40% Pullback

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.

Reddit Inc (NYSE:RDDT) Price Target and Earnings Highlights

On February 13, 2025, Laura Martin from Needham set a price target of $220 for Reddit Inc (NYSE:RDDT). At that time, the stock was priced at $199.60, indicating a potential increase of about 10.22%. This announcement, highlighted by Benzinga, came after Reddit analysts raised their forecasts due to strong earnings.

Reddit's fourth-quarter results exceeded expectations, with revenue reaching $427.71 million, surpassing the $405.26 million consensus. Earnings per share were 36 cents, beating the predicted 25 cents. CEO Steve Huffman expressed excitement over these achievements, emphasizing revenue milestones and international growth.

Looking forward, Reddit expects first-quarter revenue between $360 million and $370 million, above the $358.08 million estimate. The company also projects adjusted EBITDA of $80 million to $90 million. Following the earnings report, Reddit's stock rose 1.3%, closing at $216.47.

Despite the positive earnings, RDDT's current price is $198.10, down 8.49% or $18.37. Today, the stock traded between $195.98 and $214.30. Over the past year, it reached a high of $230.41 and a low of $37.35. Reddit's market cap stands at approximately $34.78 billion, with a trading volume of 16.88 million shares today.

Reddit, Inc. (Symbol: RDDT) Sees Positive Shift in Target Price Amid Revenue Growth

  • The average target price for NYSE:RDDT has increased to $197 over the past month.
  • Reddit's stock has surged by 22% since December, outperforming the S&P 500, with a significant year-over-year revenue increase of 68%.
  • Strategic developments, including AI data licensing, have contributed $33.2 million to Reddit's revenue, with a new price target set at $275, representing a 32% upside.

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.

Raymond James Maintains "Strong Buy" Rating for Reddit, Inc. (NYSE: RDDT)

On January 21, 2025, Raymond James maintained its "Strong Buy" rating for Reddit, Inc. (NYSE: RDDT), with the action being hold. At that time, the stock price was $172.32. Raymond James also raised the price target for Reddit from $150 to $200, as highlighted by TheFly. This indicates strong confidence in Reddit's future performance.

Reddit, Inc. is set to release its fourth quarter and full year 2024 financial results on February 12, 2025, after the market closes. The company will host a conference call to discuss these results at 2 p.m. PT / 5 p.m. ET. Investors can access the live webcast and related materials on Reddit's Investor Relations website and the investor relations subreddit.

Currently, RDDT is priced at $183.10, marking a 4.43% increase or $7.77 rise. The stock has fluctuated between $175.60 and $187.01 today. Over the past year, RDDT has seen a high of $187.69 and a low of $37.35, showcasing significant volatility. This volatility may attract investors looking for potential gains.

Reddit's market capitalization stands at approximately $32.15 billion, reflecting its substantial presence in the market. Today's trading volume for RDDT is 2,443,235 shares, indicating active investor interest. The upcoming financial results release may further influence trading activity and investor sentiment.

Reddit Price Target Raised to $197 Amid Strong User Growth and Monetization Potential

Piper Sandler analysts raised their price target on Reddit (NYSE:RDDT) to $197 from $150, maintaining an Overweight rating on the stock. The revision reflects the platform’s promising growth trajectory, underpinned by increasing user engagement and monetization opportunities.

Recent data from Reddit’s Ads Manager indicates steady month-over-month growth in user numbers and stable to slightly declining cost-per-click metrics. This suggests a healthy expansion in user base and advertising inventory, setting the stage for robust monetization. According to the analysts, product innovations, including enhanced search functionality and the introduction of Answers, are expected to further drive engagement and advertiser interest.

The company’s guidance appears conservative, with projections for fourth-quarter revenue of $402 million, marking a 61% year-over-year increase, and EBITDA of $116 million.