Reddit Just Posted Strong Q4 Results — So Why Are Some Analysts Lowering Targets?

• Bank of America also lowered its price target on Reddit to $205 from $210 and kept a ‘Neutral’ rating on the shares, saying the stock still carries a premium valuation.
• However, Truist analyst Youssef Squali raised the price target on Reddit to $275 from $270 and kept a ‘Buy’ rating on the shares following a strong Q4 beat and a Q1 guidance. 
• Reddit reported a 70% jump in total revenue at $726 million for Q4, beating analysts’ estimates of $667 million, according to data from Fiscal.ai.

Reddit Inc. (RDDT) posted strong fourth-quarter (Q4) results on Thursday, with revenue jumping 70% and diluted earnings per share increasing a whopping 244%.

However, some analysts on Wall Street have lowered their price targets on the social media company despite its Q4 earnings as well as guidance for the upcoming quarter beating estimates due to overall pressure in the sector.

Shares of RDDT were down over 2.4% at the time of writing, paring some gains from the previous day.

Street Rationale

Baird lowered its price target on Reddit to $200 from $240, and maintained a ‘Neutral’ rating on the shares, saying it updated its model after its quarterly results and outlook.

Bank of America also lowered its price target on Reddit to $205 from $210 and kept a ‘Neutral’ rating on the shares, saying that while the company had another strong quarter driven by improving ad performance and several positive drivers in 2026, the stock still carries a premium valuation that it sees anticipating near-term upside.

The analyst said that even though it is raising estimates to reflect strong advertiser demand, it has lowered its target due to multiple compressions in the online media sector.

Goldman Sachs cut the price target on Reddit to $206 from $236, while maintaining a ‘Neutral’ rating on the shares. The analyst highlighted the strength in Reddit's Q4 results and noted that the company's near-term focus is on converting users to logged-in engagement, sustaining ad revenue growth, and balancing growth with margins, while long-term prospects were still tied to secular trends in digital advertising and artificial intelligence.

Bernstein lowered the price target on Reddit to $190 from $210 and kept a ‘Market Perform’ rating on the shares, saying that updates on the roadmap for data licensing deals highlighted towards the end of 2025 were "curiously missing" from the earnings call. The analyst also noted that the management suggested a change in framing from licensing deals to partnerships as they redefine how to participate in new journeys.

Evercore ISI analyst Mark Mahaney also lowered the price target on Reddit to $290 from $320 and kept an ‘Outperform’ rating on the shares, citing sector-wide de-ratings as the cause. However, the "outlook remains robust," the analyst said.

Oppenheimer, Cantor Fitzgerald, Piper Sandler, Morgan Stanley, and JPMorgan were among other analysts that lowered their ratings.

However, Truist analyst Youssef Squali raised the price target on Reddit to $275 from $270 and kept a ‘Buy’ rating on the shares following a strong Q4 beat and a Q1 guidance. The analyst said the results comfortably exceeded consensus estimates and noted that, despite the rise of Gen-AI, Reddit remains the platform for authentic human conversations with several initiatives sustaining its superior growth and share gains.

B. Riley also upped the firm's price target to $250 from $245 and maintained a ‘Buy’ rating on the shares, saying it remains bullish on Reddit after its "strong" Q4 beat and better-than-expected Q1 outlook.

Q4 Earnings Snapshot

Reddit reported total revenue of $726 million, beating analysts’ estimates of $667 million, according to data from Fiscal.ai. It also posted diluted earnings of $1.24 per share, above analysts’ expectations of $0.93 per share.

The company also announced that its board had authorized a repurchase program of up to $1 billion of Class A common stock.

Meanwhile, the company’s Q1 2026 guidance also beat expectations, with revenue expected in the range of $595 million to $605 million, and adjusted core profit in the range of $210 million to $220 million.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around RDDT shares remained in the ‘extremely bullish’ territory over the past 24 hours, amid ‘extremely high’ message volumes.

One bullish user said they were surprised by the price movement, adding that the stock is an easy long-term hold.

Another bullish user said this was a ‘great buying opportunity’ and predicted that the price would go up to $200.

Shares of RDDT have lost nearly 32% in the past year.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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