Reddit Inc (NYSE:RDDT) looks to continue a streak of beating analyst estimates since going public when the company reports third quarter financial results Thursday after market close.
• RDDT stock is staying put for now. Get the complete analysis here.
Here are the earnings estimates, what analysts are saying ahead of the report and key items to watch.
Earnings Estimates: Analysts expect Reddit to report third-quarter revenue of $545.5 million, up from $358.4 million in the past year's third quarter, according to data from Benzinga Pro.
The company has beaten analyst estimates on revenue in six straight quarters since going public in 2024.
Analysts expect Reddit to report third-quarter earnings per share of 50 cents, up from 16 cents per share in last year's third quarter.
The company has beaten analyst estimates for earnings per share in six straight quarters since going public.
Guidance from the company calls for third-quarter revenue to be in the range of $535 million to $545 million.
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What Analysts Are Saying: Reddit is benefitting from the growth of generative artificial intelligence in multiple ways, Needham analyst Laura Martin said in an investor note last month.
Martin said Reddit is a "key beneficiary" of Google, with the search engine providing Reddit answers instead of links. The analyst said this has led to publishers wanting to be included in Reddit's search results.
Reddit is also using generative AI to automate translations and build out its offshore communities faster than expected.
Martin also said Reddit is in talks with OpenAI and Alphabet’s Gemini, which could lead to continued "rapidly growing" revenue and free cash flow.
The analyst maintained a Buy rating on Reddit and raised the price target from $215 to $300.
Here are other analyst ratings for Reddit and their price targets:
- Citigroup: Maintained Buy rating, raised price target from $220 to $250
- Raymond James: Reiterated Strong Buy rating, raised price target from $225 to $250
- Truist Securities: Maintained Buy rating, raised price target from $225 to $260
- Wells Fargo: Maintained Equal-Weight rating, raised price target from $155 to $174
- JMP Securities: Reiterated Market Outperform with price target of $300
Key Items to Watch: Reddit's partnerships with Google and other AI companies continue to be one of the biggest trends to watch for the company.
In September, it was reported that Reddit was in talks with Google for a new dynamic pricing model.
With Reddit results showing up higher in search results, the social media platform is becoming more important to publishers and companies for advertising. An Adweek report said brands are rushing to Reddit to boost their advertising spend on the platform as the results become more relevant in AI-powered search results.
Reddit reported revenue growth of 78% year-over-year in the second quarter, along with impressive growth for daily active unique users and free cash flow.
Investors and analysts will be looking for continued growth and strong financial results to carry on the recent trends since going public.
RDDT Price Action: Reddit stock trades at $208.15 on Wednesday versus a 52-week trading range of $79.75 to $282.95. Reddit shares are up 28.2% year-to-date in 2025.
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