NEW YORK, June 5, 2026, 08:03 (EDT)
Reddit Inc. shares traded up ahead of Friday’s session, building on Thursday’s big jump. Loop Capital kept its Buy call and $260 target, which the firm says is where the stock could go. Google Finance had Reddit at $185.60 before the bell, up 0.92%. The stock finished Thursday at $183.91, an 8.51% gain.
The call is back in focus as Reddit’s slide looks more like a valuation reset than a change in story. StockStory pointed to a Loop report that put upside at over 50% from shares trading near $169, mentioning Reddit’s revenue growth, its ad monetization, and its AI data licensing—payments for Reddit content used by artificial-intelligence tools.
U.S. markets are open for normal trading hours Friday, with the NYSE and Nasdaq set for their regular 9:30 a.m. to 4 p.m. Eastern session. The next stock market holiday is Juneteenth on June 19. Premarket trading ahead of the main open usually sees less volume and thinner liquidity.
Reddit CEO Steve Huffman spoke to investors at the BofA Securities tech conference on June 3, saying the company still thinks about how it can “10x our user base” and “20x our revenue.” Huffman said Reddit sees a longer road to hitting 1 billion daily active users globally. Seeking Alpha
Reddit’s latest results gave bulls a target. The company posted a 17% jump in first-quarter daily active uniques to 126.8 million. Revenue was up 69% to $663 million, net income hit $204 million. CEO Steve Huffman described Reddit as a “one-of-one business” driven by communities and “authentic human conversation.” Reddit Investor Relations
Ad growth is still the main concern. Chief Operating Officer Jen Wong told Reuters after the quarter that the “active advertiser count grew 75% year-over-year.” She said performance ads — ads tied to things like purchases, installs or sign-ups — made up over 60% of ad revenue. Wong noted that partners continue planning “month to month” because of volatility, but she said there was no material change in commitments. Reuters
Reddit is now competing for ad dollars with Meta Platforms, Snap, and Pinterest, but starting from a smaller scale. According to Zacks, Reddit’s shares have beaten those three over the last year. The note still pointed to tough digital ad competition and high valuation as worries.
Options traders jumped at this. TheFly, via TipRanks, flagged higher than usual bullish call trading in Reddit, noting call options traded at about double expected volume. Weekly $185 and $190 calls expiring June 5 were two of the busiest.
But the setup is messy. Reddit still needs to prove its ad products can attract more dollars without turning off its users, and Meta has already rolled out a forum app for discussion groups. If ad sales slow, AI data licensing demand drops, or the market cuts lofty valuations for growth stocks, the whole argument could flip.
Reddit now has to deliver on its second-quarter outlook. The company is targeting revenue between $715 million and $725 million and adjusted EBITDA of $285 million to $295 million. That doesn’t give much margin for error following the recent run-up.
