Here’s what Wall Street is saying about Reddit ahead of earnings

Reddit (RDDT) is scheduled to report results of its fiscal second quarter after the market close on July 31, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: In May, Reddit forecast Q2 revenue of $410M-$430M, with adjusted EBITDA of $110M-$130M. Analysts currently expect Reddit to report quarterly revenue of $425.75M.

Roth Capital expects upside to Q2 high-end guidance, but is worried about “dependence” on Google (GOOGL) and the growing negative impact from AI Search, the analyst tells investors in a research note. Wells Fargo says financial results should be in line to ahead of expectations, but the focus likely continues to be on the health of search referral traffic. Despite continued logged-out user volatility, Wells believes logged-in Daily Active Unique users must continue to grow for the stock to work. BofA modestly raised its estimates ahead of the Q2 report, citing constructive checks and improved ad demand since April. However, it cited tougher second half revenue comparisons, a valuation that likely factors revenue and margin upside, and data suggesting slowing user growth for its unchanged Neutral rating.

POSITIVE SETUP INTO REPORT: Raymond James raised the firm’s price target on Reddit to $175 from $150 and keeps a Strong Buy rating on the shares. The firm sees a positive setup for the shares heading into the Q2 report. Reddit’s daily active users can beat consensus estimates and management may offer early commentary on the tailwinds from artificial intelligence search, the analyst tells investors in a research note. Raymond James believes third party data indicates a recovery in May and June for Reddit users.

Citi believes Reddit is in the early days in its monetization journey as newer ads products launch and more advertisers are attracted to its platform. After attending the Cannes Lions International Festival of Creativity, the firm is “incrementally positive” on the broader online advertising macro environment, artificial intelligence innovation, and key growth drivers of the web.

MORE FAVORABLE BACKDROP: Morgan Stanley increased estimates across the internet space to reflect a more favorable macro backdrop and lower China tariffs. Morgan Stanley also rolled its valuation methodologies to mid-year 2026.

RBC Capital’s ad load analysis across the company’s monetized surfaces continues to hover in the mid-teens, which was flat to very slightly down vs. its last analysis in May. RBC added that its latest investor conversations following its small business ad checks reflect investors sounding marginally more positive on the stock.

BENEFIT FROM TIKTOK SPENDING DECLINES: TD Cowen spoke with an ad expert from a Digital agency and reported to investors that his agency’s spending on TikTok declined 20% year-over-year in Q2. The expert also noted that advertisers continue to shift some spending to other platforms such as Reddit, Pinterest (PINS), and Snap (SNAP).

SENTIMENT: Check out recent Media Buzz Sentiment for Reddit as measured by TipRanks.