Social media platform Reddit (RDDT) is scheduled to announce its first-quarter results after the market closes on Thursday, April 30. RDDT stock has declined 35% year-to-date due to concerns about slowing revenue growth, the impact of macro pressures on ad spending, and intense competition. However, Reddit bulls are confident about the company’s continued growth and see strong monetization upside, given that several AI companies rely on the platform’s data to train large language models (LLMs). According to TipRanks’ Options Tool, options traders expect a 13.35% move in either direction in RDDT stock in reaction to Q1 2026 earnings.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
This implied move is higher than RDDT stock’s average post-earnings move (in absolute terms) of 9.14% over the past four quarters.
Meanwhile, Wall Street expects Reddit to report EPS (earnings per share) of $0.57, reflecting 338% year-over-year growth. Revenue is projected to grow 55% to $607.74 million.
Analysts’ Views Ahead of Reddit’s Q1 Earnings
Recently, D.A. Davidson analyst Wyatt Swanson initiated coverage of Reddit stock with a price target of $200. Swanson believes that Reddit remains significantly under-monetized compared to peers and has positioned itself as a “human-first social platform” expected to continue to win additional users and advertisers as it expands.
The analyst expects Reddit’s expansion to support favorable contract renewals with the leading LLMs, a broader base of advertisers, and additional operating leverage. Swanson contends that the year-to-date decline in RDDT shares, with no deterioration in fundamentals, presents an attractive opportunity to initiate coverage of Reddit stock with a Buy rating.
Meanwhile, Citizens analyst Andrew Boone lowered the price target for Reddit stock to $250 from $300 and reiterated a Buy rating. The 5-star analyst expects the company to deliver another beat-and-raise quarter, driven by product improvements across onboarding, search, localization, and ad tooling. These efforts are expected to support continued DAU (daily active users) growth and monetization momentum. The analyst believes that brands are more aware of the use of Reddit in AI search, given the investments being made in the platform organically and through ads to increase their visibility with AI chatbots.
Boone added that RDDT’s ad products continue to improve, with Max campaigns enhancing capabilities. He noted the continued improvement in shopping ad formats and retail integrations. While the analyst acknowledges that Reddit faces tough comparisons after more than 60% growth in 2024 and 2025, he believes that the company can continue to gain share of advertising budgets given its unique role in the search and AI-chatbot ecosystem.
AI Analyst Is Bullish on RDDT Stock
Interestingly, TipRanks’ AI Analyst has an Outperform rating on Reddit stock with a price target of $172, indicating 15.2% upside potential. The AI Analyst’s bullish stance is based on the company’s fundamentals and the latest earnings outlook. However, the AI Analyst cautioned about weak technicals and a premium valuation that leaves less room for execution missteps.
Is RDDT Stock a Good Buy?
Overall, Wall Street has a Moderate Buy consensus rating on Reddit stock based on 13 Buys, nine Holds, and one Sell rating. The average RDDT stock price target of $219.30 indicates about 47% upside potential.
