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The Analyst Verdict: Reddit In The Eyes Of 24 Experts
Throughout the last three months, 24 analysts have evaluated Reddit (NYSE:RDDT), offering a diverse set of opinions from bullish to bearish.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 10 | 7 | 6 | 0 | 1 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 5 | 2 | 2 | 0 | 0 |
| 2M Ago | 4 | 4 | 3 | 0 | 0 |
| 3M Ago | 1 | 1 | 0 | 0 | 1 |
Analysts have set 12-month price targets for Reddit, revealing an average target of $153.25, a high estimate of $220.00, and a low estimate of $75.00. Experiencing a 17.52% decline, the current average is now lower than the previous average price target of $185.81.
Understanding Analyst Ratings: A Comprehensive Breakdown
A clear picture of Reddit's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Ken Gawrelski | Wells Fargo | Lowers | Equal-Weight | $115.00 | $168.00 |
| Aaron Kessler | Seaport Global | Announces | Buy | $165.00 | - |
| Ronald Josey | Citigroup | Raises | Buy | $158.00 | $150.00 |
| Ken Gawrelski | Wells Fargo | Raises | Overweight | $168.00 | $158.00 |
| Rohit Kulkarni | Roth MKM | Raises | Neutral | $130.00 | $120.00 |
| Eric Sheridan | Goldman Sachs | Raises | Neutral | $140.00 | $124.00 |
| Michael Morris | Guggenheim | Lowers | Buy | $165.00 | $170.00 |
| Naved Khan | B. Riley Securities | Lowers | Buy | $220.00 | $222.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $150.00 | $140.00 |
| Laura Martin | Needham | Raises | Buy | $145.00 | $135.00 |
| Brian Nowak | Morgan Stanley | Lowers | Overweight | $140.00 | $210.00 |
| Ronald Josey | Citigroup | Lowers | Buy | $150.00 | $220.00 |
| Eric Sheridan | Goldman Sachs | Lowers | Neutral | $124.00 | $185.00 |
| Thomas Champion | Piper Sandler | Lowers | Overweight | $140.00 | $220.00 |
| Justin Post | B of A Securities | Lowers | Neutral | $110.00 | $190.00 |
| Doug Anmuth | JP Morgan | Lowers | Neutral | $110.00 | $185.00 |
| Youssef Squali | Truist Securities | Announces | Buy | $150.00 | - |
| Ken Gawrelski | Wells Fargo | Lowers | Overweight | $158.00 | $215.00 |
| Devin Ryan | JMP Securities | Lowers | Market Outperform | $155.00 | $200.00 |
| Laura Martin | Needham | Maintains | Buy | $220.00 | $220.00 |
| Michael Morris | Guggenheim | Lowers | Buy | $170.00 | $210.00 |
| James Cordwell | Redburn Atlantic | Announces | Sell | $75.00 | - |
| Josh Beck | Raymond James | Lowers | Strong Buy | $200.00 | $250.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $220.00 | $210.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Reddit. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Reddit compared to the broader market.
- Price Targets: Analysts set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Reddit's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Reddit analyst ratings.
Discovering Reddit: A Closer Look
Reddit is a social media platform where users can engage in conversations, explore, and create communities centered around their interests. Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit has evolved into a vast network of user-generated content organized into specialized forums known as "subreddits." The platform's unique community-driven model relies on volunteer moderators to manage content and maintain subreddit guidelines. Reddit generates revenue through advertising, Premium Memberships, and data licensing agreements.
Breaking Down Reddit's Financial Performance
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Positive Revenue Trend: Examining Reddit's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 61.49% as of 31 March, 2025, showcasing a substantial increase in top-line earnings. When compared to others in the Communication Services sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Reddit's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 6.67%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Reddit's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 1.2%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Reddit's ROA excels beyond industry benchmarks, reaching 1.1%. This signifies efficient management of assets and strong financial health.
Debt Management: Reddit's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.01.
Analyst Ratings: Simplified
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.