RDDT Stock Rallies As Q1 Earnings Near: Will ChatGPT, Gemini AI Deals Power A Beat Again?

• RDDT is on track for its best weekly move since July 2025.
• The majority of the analysts covering the stock recommend ‘Buy’ or higher, projecting an average price appreciation of 40%.
• Stocktwits sentiment for RDDT improved this week, reaching ‘extremely bullish’ on Friday.

Reddit stock has gained more than 16% in four sessions and is heading towards its best week in about 10 months, ahead of the company’s quarterly report due on April 30.

The rally, following a stretch of range-bound trading since Reddit’s early-February earnings, highlights renewed investor optimism, with analysts increasingly viewing the stock as an attractive play on strong AI-driven growth and a still-depressed price.

Retail View On RDDT Improves With Stock Gain

On Stocktwits, the retail sentiment for RDDT climbed over the past week and was ‘extremely bullish’ early Friday. Message volume for the ticker increased by more than 130% during this period. “$RDDT up 20% on my average. Feel like $180 is coming next probably by ER,” said a user, forecasting an 11% upward move from the current level.

Reddit surged into the spotlight last year, with strong growth in sales, profit and traffic driven by a suite of AI-powered ad tools that attracted more advertisers, alongside content licensing deals with OpenAI’s ChatGPT and Google’s Gemini that helped boost user traffic. Notably, sales jumped 70% to $2.2 billion in 2025, and the company posted its first annual net profit of $530 million. 

The company has delivered an earnings and revenue beat for four consecutive quarters.

Analysts’ View On RDDT

Reddit is the fastest-growing ad platform and one of the most profitable within the social media group, while also serving as the most heavily cited reference for ChatGPT and Gemini, Truist said in an investor note earlier this month, before this week's rally. At the time, the research firm said the stock’s price was “compelling” and reiterated a ‘Buy’ rating.

However, several analysts, including Truist, have lowered their price targets on Reddit in recent weeks, but remain upbeat or neutral about the firm’s business. Wells Fargo said digital ad spending appears healthy heading into the earnings season, while Bank of America believes Reddit, due to its growth rate and valuation, is one of the most macro-sensitive stocks in its coverage group

To be sure, Reddit's stock is still down 30% year-to-date.

Analysts, on average, expect Reddit’s first-quarter revenue to rise 55% to $607.2 million, per Koyfin. Adjusted profit is expected to rise 68% to $1.11 per share. Currently, 20 out of 31 analysts recommend ‘Buy’ or higher for RDDT, 10 rate it ‘Hold’, and one rates it ‘Sell,’ with an average price target of $228, which implies 40% gains.

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