RDDT News & Analysis
4 articles
Market Mood
Reddit (RDDT) Price Target Lowered to $185 Amid User Growth Risks
On September 17, DA Davidson reduced its price target for Reddit, Inc. (NYSE:RDDT) from $200 to $185 while maintaining a Buy rating. The firm noted risks to daily active user growth and pointed to data indicating users may fall below consensus estimates. In Q2 2026, Reddit reported an 18% year-over-year increase in daily active uniques to 130.3 million and generated $805 million in revenue, showing continued strong financial performance. Despite being down over 30% year-to-date, analyst sentiment remains largely positive with 66% of the 35 analysts rating the stock a Buy and a median 12-month price target of $212.50, implying a potential 34% upside.
Read More: Reddit (RDDT) Price Target Lowered to $185 Amid User Growth Risks
Reddit (RDDT) Announces 61% Revenue Growth in Q2 2026
Reddit, Inc. (NYSE: RDDT) reported second-quarter revenue of $805 million, a 61% increase year over year. Advertising revenue rose 64% to $762 million, while adjusted EBITDA more than doubled to $343 million. Daily active uniques increased 18% to 130.3 million, and the company forecasts Q3 revenue between $860 million and $870 million. With a forward P/E ratio of 23.31 and a market capitalization of approximately $29.4 billion, Reddit is focused on expanding its direct user base. Understanding Reddit's financial growth and valuation can inform investment decisions concerning its potential performance.
Read More: Reddit (RDDT) Announces 61% Revenue Growth in Q2 2026
Reddit (RDDT) Stock Drops 22% Amidst Earnings Report Disappointment
On July 31, 2026, Reddit (RDDT) stock fell over 22%, marking its largest intraday drop since going public. This decline occurred after the company's earnings report revealed no new artificial intelligence data licensing agreements, which investors had anticipated. Revenue reached $804.9 million, exceeding estimates of $731.8 million. However, US daily active users were reported at 53.2 million, missing expectations of 54 million. This matters for investors as it highlights the stock's volatility and the influence of user engagement metrics on market perceptions.
Read More: Reddit (RDDT) Stock Drops 22% Amidst Earnings Report Disappointment
Reddit (RDDT) Reports $663M Revenue, $1.01 EPS in Q1 2026
Reddit Inc (NYSE:RDDT) reported a revenue of $663 million for Q1 2026, reflecting a 69% year-over-year increase. The earnings per share reached $1.01, surpassing Wall Street estimates. The growth was significantly supported by a 74% surge in advertising revenue. Additionally, Reddit issued second-quarter revenue guidance above analyst expectations, indicating continued momentum in its financial performance.
Read More: Reddit (RDDT) Reports $663M Revenue, $1.01 EPS in Q1 2026