Reddit Stock: A Deep Dive Into Analyst Perspectives (22 Ratings)
In the last three months, 22 analysts have published ratings on Reddit (NYSE:RDDT), offering a diverse range of perspectives from bullish to bearish.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 3 | 11 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 2 | 1 | 4 | 0 | 0 |
| 2M Ago | 1 | 0 | 1 | 0 | 0 |
| 3M Ago | 5 | 2 | 5 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $151.27, a high estimate of $220.00, and a low estimate of $115.00. This current average has increased by 2.24% from the previous average price target of $147.95.
Deciphering Analyst Ratings: An In-Depth Analysis
The standing of Reddit among financial experts becomes clear 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 |
|---|---|---|---|---|---|
| Mark Shmulik | Bernstein | Raises | Market Perform | $150.00 | $130.00 |
| Rohit Kulkarni | Roth Capital | Raises | Neutral | $145.00 | $130.00 |
| Brian Nowak | Morgan Stanley | Raises | Overweight | $170.00 | $154.00 |
| Colin Sebastian | Baird | Raises | Neutral | $151.00 | $120.00 |
| Ken Gawrelski | Wells Fargo | Raises | Equal-Weight | $118.00 | $115.00 |
| Brad Erickson | RBC Capital | Maintains | Sector Perform | $125.00 | $125.00 |
| Ronald Josey | Citigroup | Raises | Buy | $163.00 | $158.00 |
| Michael Morris | Guggenheim | Maintains | Buy | $165.00 | $165.00 |
| Alan Gould | Loop Capital | Lowers | Buy | $200.00 | $210.00 |
| Brad Erickson | RBC Capital | Announces | Sector Perform | $125.00 | - |
| Colin Sebastian | Baird | Lowers | Neutral | $120.00 | $140.00 |
| Ken Gawrelski | Wells Fargo | Lowers | Equal-Weight | $115.00 | $168.00 |
| Colin Sebastian | Baird | Lowers | Neutral | $140.00 | $125.00 |
| 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 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Reddit. This information offers a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Reddit compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Reddit's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Capture valuable insights into Reddit's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Reddit analyst ratings.
All You Need to Know About Reddit
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.
Understanding the Numbers: Reddit's Finances
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
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. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Communication Services sector.
Net Margin: Reddit's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.67% net margin, the company effectively manages costs and achieves strong profitability.
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 is below industry standards, pointing towards difficulties in efficiently utilizing assets. With an ROA of 1.1%, the company may encounter challenges in delivering satisfactory returns from its assets.
Debt Management: Reddit's debt-to-equity ratio is below the industry average. With a ratio of 0.01, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: Simplified
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Some analysts also offer predictions for helpful metrics such as earnings, revenue, and growth estimates to provide further guidance as to what to do with certain tickers. It is important to keep in mind that while stock and sector analysts are specialists, they are also human and can only forecast their beliefs to traders.
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