A Glimpse Into The Expert Outlook On Reddit Through 22 Analysts
In the last three months, 22 analysts have provided ratings for Reddit (NYSE:RDDT), showing a mix of bullish to bearish sentiments. The average 12-month price target is $177.36, up 14.89% from $154.38. Key analysts have raised their ratings and price targets, reflecting positive adjustments in response to market conditions. Reddit's financial performance includes a revenue growth rate of 77.69%, a net margin of 17.87%, and a return on equity of 3.88%. Analysts' evaluations are crucial for understanding Reddit's market position and guiding investment decisions.
In the preceding three months, 22 analysts have released ratings for Reddit (NYSE:RDDT), presenting a wide array of perspectives from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 8 | 4 | 10 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 5 | 3 | 3 | 0 | 0 |
| 2M Ago | 2 | 1 | 5 | 0 | 0 |
| 3M Ago | 1 | 0 | 1 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $177.36, a high estimate of $230.00, and a low estimate of $118.00. This current average reflects an increase of 14.89% from the previous average price target of $154.38.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Reddit by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Brad Erickson | RBC Capital | Maintains | Sector Perform | $210.00 | $210.00 |
| Doug Anmuth | JP Morgan | Raises | Neutral | $190.00 | $145.00 |
| Michael Morris | Guggenheim | Raises | Buy | $215.00 | $165.00 |
| Josh Beck | Raymond James | Raises | Strong Buy | $225.00 | $175.00 |
| Andrew Boone | JMP Securities | Raises | Market Outperform | $225.00 | $180.00 |
| Thomas Champion | Piper Sandler | Raises | Overweight | $210.00 | $150.00 |
| Brian Nowak | Morgan Stanley | Raises | Overweight | $230.00 | $170.00 |
| Justin Post | B of A Securities | Raises | Neutral | $180.00 | $150.00 |
| Laura Martin | Needham | Raises | Buy | $215.00 | $165.00 |
| Justin Post | B of A Securities | Raises | Neutral | $150.00 | $130.00 |
| Josh Beck | Raymond James | Raises | Strong Buy | $175.00 | $150.00 |
| Laura Martin | Needham | Raises | Buy | $165.00 | $145.00 |
| 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 | - |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Reddit. This insight gives a snapshot of analysts' perspectives on 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 provide insights into price targets, offering estimates for the future value of Reddit's stock. This comparison reveals trends in analysts' expectations over time.
Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Reddit's market standing. Stay informed and make data-driven decisions with 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.
Reddit: A Financial Overview
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Reddit's revenue growth over a period of 3M has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 77.69%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Communication Services sector.
Net Margin: Reddit's net margin excels beyond industry benchmarks, reaching 17.87%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): Reddit's ROE stands out, surpassing industry averages. With an impressive ROE of 3.88%, the company demonstrates effective use of equity capital and strong financial performance.
Return on Assets (ROA): Reddit's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 3.52%, the company showcases efficient use of assets and strong financial health.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 0.01.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
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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