2 hours ago
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Thomas Richmond
Sat, April 11, 2026 astatine 11:10 AM CDT 6 min read
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Reddit (RDDT) trades astatine $145 against a $228.98 expert terms target, implying 58% upside, with Q4 2025 gross up 70% YoY to $725.61M and nett income reaching $251.60M astatine a 34.7% margin, though Q1 2026 guidance of $595M-$605M signals sequential deceleration contempt 444 cardinal play progressive users and information licensing deals with Google and OpenAI.
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Reddit’s banal diminution stems from an EPS miss, enforcement selling, a UK regulatory fine, and macro concerns astir advertisement spending, yet analysts stay bullish connected planetary ARPU enlargement and AI products similar Reddit Max gaining advertiser adoption.
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The expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks. Get them present FREE.
Reddit (NYSE:RDDT) presently trades astatine $145, portion the mean Wall Street expert terms people sits astatine $228.98, implying astir 58% upside from existent levels. That spread demands explanation.
Reddit reaches astir 444 cardinal play progressive users and present ranks arsenic the 3rd most-visited website successful the U.S. What makes it basal retired is simple: it is 1 of the fewer places online wherever radical inactive speech to each different openly, astatine scale, astir about anything. That authenticity has started to construe into existent concern value.
RDDT is down 36.93% year-to-date, falling from $229.87 astatine year-end to $144.98 currently. The S&P 500 is fundamentally level year-to-date, down conscionable 0.86%. That divergence points to Reddit-specific factors.
READ: The expert who called NVIDIA successful 2010 just named his apical 10 AI stocks
The banal slipped astir 9% pursuing Q4 2025 earnings. Revenue grew 70% year-over-year to $725.61 million, beating the $668.23 cardinal statement by 8.59%, and nett income reached $251.60 cardinal astatine a 34.7% margin. But EPS of $1.24 missed the $1.45 estimation by 14.48%, and Q1 2026 gross guidance of $595 cardinal to $605 cardinal implied a step-down successful sequential momentum.
Executive selling has besides weighed connected sentiment. CEO Steve Huffman sold shares aggregate times this year, and the COO and CTO besides reduced positions, with COO Jennifer Wong selling 39,165 shares astatine $142 to $146. Board subordinate Sarah Farrell purchased 50,500 shares worthy astir $7.48 cardinal successful February 2026. The UK's Information Commissioner's Office issued a £14.47 cardinal good for failing to adequately support children's idiosyncratic data, adding regulatory overhang. Retail investors connected Reddit's level person been bearish, with threads debating whether LLMs are eroding Reddit's accusation moat.
The expert assemblage has not flinched. Of the 32 analysts tracked, 21 complaint the banal a Buy, 10 complaint it a Hold, and conscionable 1 a Sell. That lopsided organisation reflects that analysts are mostly bullish connected the institution astatine existent prices.
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