Reddit heads into Thursday’s earnings report carrying some baggage. The stock is down 36% in 2026 alone, even after a blockbuster run since its March 2024 IPO at $34 that still leaves it up around 326% from that listing price.
The report drops after the bell on Thursday. Wall Street is looking for adjusted earnings of $0.57 per share on revenue of $608 million, according to FactSet.
The company beat estimates last quarter, posting revenue of $725.6 million — up 69.7% year-over-year — along with a strong EBITDA beat. That sets a high bar heading into Q1.
This quarter, the market expects revenue growth of around 55% year-over-year. That’s a step down from the 61.5% growth Reddit posted in Q1 last year.
One area getting close attention is daily active users. Reddit reported 52.5 million DAUs last quarter, up 9.4% year-over-year. For Q1, analysts expect global DAU growth of 16% — a slowdown from the 30.7% growth posted in the same quarter a year ago.
That deceleration has made some investors uneasy, particularly as AI-powered tools like ChatGPT, Google AI Overviews, and others give users more ways to find answers without visiting the platform directly.
On the advertising side, the picture looks more encouraging. Analysts forecast Q1 ad revenue of $567 million, a 58% jump from the same period last year.
Jefferies analyst John Colantuoni, who rates RDDT a Buy with a $250 price target, noted in mid-April that advertiser conversations pointed to “resilient digital budgets” and “particularly strong trends” at Reddit.
Reddit is also positioning itself as something AI can’t easily replicate — a platform built on real human opinions and discussion. That’s the bull case, at least.
D.A. Davidson analyst Wyatt Swanson made that argument explicitly on April 21, writing that Reddit “remains incredibly under-monetized relative to peers” and has positioned itself as a “human-first social platform.” He rates the stock a Buy with a $200 price target.
A look at other consumer internet names that have already reported gives some context. Booking posted 16.2% revenue growth in Q1, in line with estimates. Coursera came in at 9.1% growth and fell 11.6% after reporting.
Reddit has a track record of beating Wall Street expectations, and analysts have largely held their estimates steady in the past 30 days — a sign they’re not expecting any major surprises.
Over the past month, consumer internet stocks have gained an average of 16.2%. Reddit is up 19.5% in that same window, suggesting the market has already started to price in some optimism ahead of the print.
The average analyst price target of $223.34 implies roughly 50% upside from the current price of around $148.40.
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