Reddit (RDDT) is set to report its third-quarter earnings after market close on Thursday, October 30, and Wall Street is bracing for a potentially large move. According to options pricing, traders are bracing for a 13.95% swing in either direction. This is slightly higher than the social media platform’s one-year average post-earnings move of 12.49%.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
What to Watch in Reddit’s Earnings
At the Q3 earnings call, investors will be focused on Reddit’s efforts to navigate a competitive ad market and ramp up its AI-driven offerings.
Particularly, traders will watch the company’s ad revenue growth, user engagement trends, and how Reddit is expanding its platform to attract new communities and retain existing ones.
Also, investors will be watching how Reddit is using AI for content moderation and personalization, and how those efforts are being monetized. Finally, management’s outlook for Q4 and Fiscal 2026 will be in focus, particularly due to macro uncertainty and shifting consumer behavior.
Analysts’ Expectations from RDDT’s Q3 Results
Wall Street is expecting Reddit to report earnings of $0.53 per share, much higher than $0.16 in the same period last year. Also, analysts project revenues of $549.12 million, up from $348.35 million in the year-ago quarter.
Ahead of the earnings, Citi analyst Ronald Josey raised Reddit stock’s price target to $250 from $220 and kept a Buy rating. Josey also added RDDT to his “90-day catalyst watch,” expecting the Q3 report to spark upside.
The five-star analyst believes Reddit’s app and website redesign could boost user growth, and recent checks indicate the company is still gaining momentum in making money from its platform.
Is Reddit Stock a Good Buy?
Currently, Wall Street has a Moderate Buy consensus rating on RDDT stock based on 16 Buys and eight Holds. The average Reddit stock price target of $237.87 indicates an 18.25% upside potential from current levels.
