Reddit Analysts Slash Their Forecasts Following Q3 Earnings

Reddit, Inc. (NYSE:RDDT) on Thursday posted upbeat earnings for the third quarter, but issued weaker-than-expected guidance.

Reddit reported third-quarter revenue of $895 million, up 53% year over year and above the $878.02 million analyst estimate. Earnings per share came in at $1.40, beating the $1.36 consensus.

The company forecast fourth-quarter revenue of $1.00 billion-$1.03 billion, below the $1.046 billion analyst estimate.

“Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate,” said Steve Huffman, Founder and CEO of Reddit. “Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform.”

Reddit shares fell 21.6% to $101.60 in pre-market trading.

These analysts made changes to their price targets on Reddit following earnings announcement.

• Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and lowered the price target from $170 to $120.
• Keybanc analyst Devin Au downgraded the stock from Overweight to Sector Weight.
• Needham analyst Laura Martin maintained the stock with a Buy and lowered the price target from $300 to $150.

Considering buying RDDT stock? Here’s what analysts think:

Photo via Shutterstock