Factoring in expectations for a continued healthy operating environment, Goldman raised its revenue estimates for Reddit for the period from 2025 through 2027.
Reddit, Inc.’s (RDDT) stock rose over 1.50% in Wednesday’s early premarket session after the community-based social-media company’s stock received a price-target boost from a Wall Street firm.
After hitting an all-time peak of $282.95 on Sept. 18, Reddit stock has been broadly tracing a downtrend amid concerns regarding growth in key user metrics and engagement trends. On Tuesday, the stock fell 3.60% to $196.35 amid the tech sell-off.
The near-term weakness defied positive analyst actions seen in the recent past. In a note released late Tuesday, Goldman Sachs raised the price target for Reddit stock to $236 from $212 as part of its broader digital advertising second-quarter preview note, according to a summary of the note posted on The Fly. The new price target implied about 20% upside from the last closing price. Goldman, however, maintained a ‘Neutral’ rating on the stock.
Factoring in expectations for a continued healthy operating environment, Goldman raised its revenue estimates for Reddit for the period from 2025 through 2027. Analysts at the firm also said their checks revealed continued momentum for Reddit as the company builds scale in core advertising and data-licensing revenues in the second half of 2025 and beyond.
In early October, Wells Fargo increased its stock price target for Reddit from $155 to $174 as it increased its revenue estimate modestly, implying a robust 60% year-over-year growth. Baird’s Colin Sebastian hiked his price target to $240 from $177. All these analysts, however, chose to remain on the sidelines.
A Stocktwits user, bullish on Reddit, believed the correction was over and expected a move higher, potentially taking the stock to its previous highs or surpassing that level.
Another user expected a move to $300 by Christmas.
Reddit is scheduled to release its third-quarter results after the market closes on Oct. 30. According to the Fiscal.ai-compiled consensus, Reddit is expected to report adjusted earnings per share (EPS) of $0.51 versus the year-ago’s $0.16, and revenue of $546.65 million, marking a 57% YoY increase.
Reddit stock has surged 20% this year, with a Koyfin-compiled consensus price target of $221.33, implying over 13% upside potential from Tuesday’s level.
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