DailyIQ
Last updated3 minutes ago

RDDT·Reddit, Inc.

$150.84
-1.99 (-1.30%)
Market Closed (Overnight)$151.65+0.81 (+0.54%)
High
$154.37
Open
$152.69
Market Cap
29.02B
52W High
$263.70
Low
$150.20
P. Close
$150.84
P/E
33.32
52W Low
$119.27
Fwd P/E
15.57
DailyIQ Est.
$227.93
Inst. Ownership
47.8%
Short Interest
10.58%
Days to Cover
2.6
Technical Score (1D)
27
SELL
News Sentiment
53
MIXED
President Capital lowered its price target for RDDT to $199 from $207, keeping a buy rating, a move that signals a more conservative view of the company’s near‑term upside while still affirming confidence in its growth trajectory. The downgrade reflects a reassessment of the company’s valuation outlook but leaves the target comfortably above the current market price, so the immediate impact on trading sentiment is limited. This adjustment should be watched over the next 1–10 trading days as it may influence short‑term investor positioning and liquidity. Two hours later, a Form 4 filing revealed that COO Jennifer L. Wong sold 60,000 RDDT shares for $9.7 million, reducing her direct holdings to just over one million shares. The sale, while sizable, does not indicate an operational or financial shift and is likely a short‑term liquidity move. However, insider selling can affect market perception of confidence, so traders should monitor subsequent insider activity and any commentary from management for signs of changing sentiment. Together, the price target revision and insider sale suggest a cautious but still positive outlook for RDDT, with potential short‑term volatility as investors digest the new target and assess insider confidence. Watch for the next earnings release and any updates on the company’s product pipeline, as these will be key drivers for the next trading cycle.
Earnings Summary
Reddit, Inc. operates a global online platform centered on user-generated content and community interaction, positioning itself within the Communication Services sector and the Internet Content & Information industry, where it competes for advertising dollars and user engagement. In the most recent quarters, Reddit delivered a strong earnings trajectory: Q4 2025 posted EPS of $1.24 versus an estimate of $0.96, and Q1 2026 EPS of $1.01 versus $1.11, indicating a slight miss but still robust revenue growth of $663.41M from $609.78M, a 8.8% increase. The company’s Q2 2026 EPS of $1.25 beat the $1.45 estimate while revenue rose to $804.91M from $744.86M, a 8.2% YoY jump, underscoring a consistent pattern of beating earnings estimates in the last three quarters while maintaining revenue acceleration. Historically, Reddit has shown a YoY revenue growth trajectory that has accelerated from $427.71M in Q4 2024 to $725.61M in Q4 2025, a 69% increase, and continued upward momentum into 2026, with ad revenue surging 64% YoY in Q2 2026 to $762M, driven by the AI‑powered Max ad platform; this has translated into a series of earnings beats despite occasional EPS misses. Recent news highlights a price target revision by President Capital to $199 and insider selling by COO Jennifer L. Wong, signaling a cautious yet still positive outlook; additionally, Q2 2026 earnings beat and a 1.1% lift in next‑quarter guidance were driven by a 64% YoY jump in ad revenue, reinforcing confidence in Reddit’s monetization engine. Investors should watch for the next earnings release to confirm whether Max platform adoption continues to lift margins and whether the international user surge translates into sustained ad revenue growth, as these factors will be key to assessing the company’s ability to maintain its rapid expansion without diluting earnings or taking on additional debt.

EPS

EstBeatMiss
$-0.07$0.50$1.07$1.64$2.21Q2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$1.95 - -
Q2'26$1.45$1.25-13.6%
Q1'26$1.11$1.01-9.0%
Q4'25$0.96$1.24+29.8%
Q3'25$0.52$0.80+53.8%
Q2'25$0.19$0.45+138.4%

Revenue

EstBeatMiss
$441M$568M$695M$822M$950MQ2'25Q3'25Q4'25Q1'26Q2'26Q3'26
QtrEstActual+/−
Q3'26$891M - -
Q2'26$745M$805M+8.1%
Q1'26$610M$663M+8.8%
Q4'25$679M$726M+6.9%
Q3'25 - $585M -
Q2'25 - $500M -

Market Data

RDDT Stock Snapshot

SELL27/100
$151.65+$0.81 (0.5%)
Market cap
29.02B
P/E ratio
33.3
Day range
$150.20 – $154.37
News sentiment
53/100 · Neutral
Analyst target
$215.23 (+41.9%)
Consensus
Buy · 39 analysts
52-week range+27.1% off low · -42.5% from high
$119.27$263.70
Price $151.65 DailyIQ Est. $227.93

Reddit, Inc. is trading in the lower half of its 52-week range with momentum still pointing lower. In Communication Services, names this size usually take direction from sector flows before company-level news.

Behaviour On Record

What RDDT's own history says about today's numbers

Realized volatility (21d)
50.3% 12th pct
vs 200-day average
-12.8%
Up days (1y)
47%

Reddit, Inc. is currently running 50.3% annualised volatility over the last 21 sessions. Measured against RDDT's own 2 years of daily returns rather than a market-wide average, that is the 12th percentile unusually subdued by its own history, against a typical reading of 68.2%. The distinction matters because a number that looks calm for one stock is turbulent for another, and the absolute figure on its own tells you neither.

Price sits -12.8% from its 200-day moving average. Against every other day in its history, that gap ranks at the 26th percentile a narrower gap than it typically runs. Over the past year RDDT closed higher on 47% of sessions, and it is currently 4 sessions into a falling streak.

Overnight risk is measurable too: RDDT has opened more than 2% away from the prior close in 46 of 625 sessions (7.4% of the time), with the largest gaps running +7.5% and -8.4%. For anyone holding through an event, that rate is a better guide to overnight exposure than the intraday range.

Across the last 3 dated reports on file, RDDT moved an average of 7.7% in the session after earnings, closing higher 1 of those 3 times, with a median move of -10.3% and a largest of -12.2%.

All figures computed from 626 daily closes between 2024-03-21 and 2026-09-18, split-adjusted, recomputed daily. Percentiles are against RDDT's own 3-year history, not a peer group or index.

Sector Rotation

Is money rotating into or out of RDDT's sector?

Reddit, Inc. sits in the Communication Services sector, currently ranked 3rd of 11 GICS sectors by relative-strength rotation score (lagging).

Sector rank
#3 of 11
Sector state
Lagging
Sector rotation score
70

Options Market

What is the options market pricing for RDDT?

CallsPuts

For Reddit, Inc.'s nearest expiry (2026-09-25, 6 days out), open interest is put-heavy, a defensive/bearish tilt (put/call ratio of 1.37), with at-the-money implied volatility around 54.4%. The options market is pricing roughly a ±6.7% move by that expiry — a range of about $146.85–$168.05.

Put/call ratio (2026-09-25)
1.37
ATM implied volatility
54.4%
Total open interest
16,738
Expected move by 2026-09-25
±6.7% ($146.85–$168.05)

Analyst Rating Changes

Are analysts turning bullish or bearish on RDDT?

DA Davidson most recently reiterated its rating on Reddit, Inc. to Buy on Sep 18, 2026 with a price target of $185 (from $200). Over the last 90 days, coverage has run 0 upgrades against 0 downgrades, a net mixed lean.

Latest action
DA DavidsonBuy
90-day upgrades
0
90-day downgrades
0
Net rating momentum
0
DateFirmActionRatingPrice target
Sep 18, 2026DA DavidsonMaintainedBuy$200 → $185
Aug 21, 2026Morgan StanleyMaintainedOverweight$240 → $210
Jul 31, 2026JP MorganMaintainedNeutral$200 → $185
Jul 31, 2026OppenheimerMaintainedOutperform$225 → $200
Jul 31, 2026B. Riley SecuritiesMaintainedBuy$250 → $270
Jul 31, 2026Wells FargoMaintainedEqual-Weight$187 → $142
Jul 31, 2026Cantor FitzgeraldMaintainedNeutral$200 → $170
Jul 31, 2026Piper SandlerReiteratedOverweight$215 → $195
Jul 31, 2026Truist SecuritiesMaintainedBuy$265 → $275
Jul 31, 2026WedbushMaintainedOutperform$250 → $221
Jul 29, 2026KeybancInitiatedOverweight$225
Jul 23, 2026DA DavidsonMaintainedBuy$200

RDDT Competitive Positioning

Reddit, Inc. (RDDT) is tracked alongside these names in Internet Content & Information on DailyIQ — ranked by market cap, with today's move alongside.