What analysts think of the reddit stock prior to earnings

Reddit (RDDT) is set to report earnings in the fourth quarter after the market closes Wednesday, with analysts expecting growing revenue and users.

The social media company is expected to report a $ 408.92 million revenue, an increase of 64% year-over-year and a $ 47.6 million earnings, sharply higher from Reddits $ 18.53 million in the previous year. Analysts Project 103.24 million daily active users, up from 73.10 million a year ago.

Of the 11 analysts who follow Reddit and are traced by visible alpha, eight have an “purchase” or similar rating for Reddit Stock compared to three “team” assessments. Their average price targets of approx. $ 206, however, would represent a decrease of 9% from the stock closure rate of $ 224.93 Monday after hit a record high Friday. The stock has risen almost 40% since the start of the year alone and quickly blows past most goals set in January.

Deutsche Bank raises Reddit Price Measure

Deutsche Bank analysts upgraded their price targets to $ 235 from $ 195 Monday and pointed to the short term revenue from growth in daily active users and advertising revenue. Reddit Answers, an artificial intelligence tool that generates the summary of positions and comments, could also operate advertising revenue by becoming “a segment to capture search budgets via promoted links,” the analysts said.

In December, Morgan Stanley said Reddit could have “multiple handles to run the big growth” in 2025, including a partnership with Alphabet’s Google (Googl) that directs searches to Reddit Links. A larger user base that spends more time on the platform would also make Reddit more attractive to advertisers, which could bring Reddit’s ad prices closer to competitors such as Google and Meta Platforms (Meta), the analysts wrote.

Shares of Reddit were slightly changed and slightly lower Monday after closure at a constant Friday. The share has risen almost seven times from its original public offer price of $ 34 in March 2024.