BNP Paribas Exane Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its price objective cut by investment analysts at BNP Paribas Exane from $180.00 to $110.00 in a research note issued on Friday. BNP Paribas Exane‘s price target points to a potential upside of 20.55% from the stock’s current price.

Other analysts also recently issued reports about the company. Evercore downgraded Reddit from an “outperform” rating to an “in-line” rating and set a $120.00 target price for the company. in a research report on Monday. Needham & Company LLC decreased their price target on Reddit from $300.00 to $150.00 and set a “buy” rating on the stock in a research report on Friday. KeyCorp downgraded Reddit from an “overweight” rating to a “sector weight” rating in a research note on Friday. Telsey Advisory Group set a $240.00 price objective on shares of Reddit in a research report on Friday, July 31st. Finally, Truist Financial reduced their price objective on shares of Reddit from $275.00 to $210.00 and set a “buy” rating on the stock in a research note on Friday. Two investment analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and fifteen have issued a Hold rating to the stock. According to data from MarketBeat, Reddit presently has a consensus rating of “Moderate Buy” and a consensus target price of $180.91.

Reddit Stock Down 0.5%

Shares of RDDT traded down $0.48 during mid-day trading on Friday, hitting $91.25. 9,015,418 shares of the company’s stock were exchanged, compared to its average volume of 5,541,294. Reddit has a 52 week low of $89.28 and a 52 week high of $263.50. The stock’s 50-day simple moving average is $150.37 and its 200-day simple moving average is $160.26. The firm has a market cap of $17.56 billion, a price-to-earnings ratio of 18.68, a price-to-earnings-growth ratio of 0.42 and a beta of 2.05.

Reddit (NYSE:RDDT) last issued its quarterly earnings results on Thursday, October 29th. The company reported $1.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.33 by $0.07. The business had revenue of $894.96 million during the quarter, compared to analysts’ expectations of $874.91 million. Reddit had a return on equity of 30.57% and a net margin of 32.10%. The firm’s revenue for the quarter was up 53.0% compared to the same quarter last year. During the same period in the previous year, the company posted $0.80 earnings per share. Analysts forecast that Reddit will post 5.28 earnings per share for the current fiscal year.

Insider Activity

In other news, COO Jennifer Wong sold 75,000 shares of the business’s stock in a transaction on Friday, August 14th. The stock was sold at an average price of $178.55, for a total transaction of $13,391,250.00. Following the completion of the transaction, the chief operating officer owned 1,050,339 shares of the company’s stock, valued at approximately $187,538,028.45. The trade was a 6.66% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the company’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $159.92, for a total value of $820,069.76. Following the sale, the director owned 27,087 shares of the company’s stock, valued at approximately $4,331,753.04. This represents a 15.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 306,052 shares of company stock worth $49,754,523. Insiders own 28.48% of the company’s stock.

Institutional Investors Weigh In On Reddit

Hedge funds have recently made changes to their positions in the stock. Sunbelt Securities Inc. boosted its holdings in shares of Reddit by 87.5% during the 1st quarter. Sunbelt Securities Inc. now owns 195 shares of the company’s stock valued at $26,000 after acquiring an additional 91 shares in the last quarter. EverSource Wealth Advisors LLC raised its position in Reddit by 48.1% in the second quarter. EverSource Wealth Advisors LLC now owns 197 shares of the company’s stock valued at $34,000 after purchasing an additional 64 shares during the last quarter. Beacon Investment Advisory Services Inc. bought a new position in Reddit in the second quarter valued at about $35,000. Ascentis Independent Advisors bought a new position in Reddit in the first quarter valued at about $30,000. Finally, Hager Investment Management Services LLC boosted its stake in shares of Reddit by 522.2% during the second quarter. Hager Investment Management Services LLC now owns 280 shares of the company’s stock valued at $49,000 after purchasing an additional 235 shares in the last quarter.

Key Reddit News

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.