NEW YORK, July 6, 2026, 17:03 (EDT)
- Reddit ended the session at $200.86, moving between $195.71 and $207.56. About 5.5 million shares changed hands.
- Nasdaq climbed 1.12% and the S&P 500 added 0.72% Monday. Reddit beat the broader tech index.
- FactSet’s median price target on Reddit sits at $235, suggesting shares could gain 17% from where they finished Monday. Targets from analysts range from $120 at the low end up to $303 at the top, according to .
Reddit, Inc. NYSE:RDDT climbed roughly 3% Monday as U.S. markets reopened following the July 3 holiday break. Shares outperformed the Nasdaq Composite (INDEXNASDAQ:.IXIC). But with this move, Reddit’s median Wall Street price target is close.
The stock was last seen at $200.86. It swung in a $11.85 range during the day, about 6% of the previous close. Shares closed 3.2% off the session high. This doesn’t look like a clean breakaway move. The stock is getting marked up ahead of a Q2 check-in.
FactSet puts the median target price at $235, with the average at $227.87. The difference between the $303 high and $120 low target comes to $183, roughly 91% of Reddit’s share price on Monday. That gap may say more than the number of Buy ratings since it signals how much uncertainty remains around the company’s ad margins and user growth.
| Forecast set | Target or estimate | Implied move from $200.86 |
|---|---|---|
| FactSet high target | $303.00 | +50.9% |
| FactSet median target | $235.00 | +17.0% |
| FactSet average target | $227.87 | +13.4% |
| FactSet low target | $120.00 | -40.3% |
| Benzinga consensus target | $224.29 | +11.7% |
| Needham target in Benzinga data | $300.00 | +49.4% |
Reddit ran the test in April. First-quarter revenue jumped 69% to $663 million, with ad revenue up 74% to $625 million. Daily active uniques climbed 17% to 126.8 million. Net income reached $204 million. For the second quarter, Reddit is guiding to revenue between $715 million and $725 million and adjusted EBITDA in the $285 million to $295 million range.
| Operating line | Q1 actual | Q2 guide midpoint | Sequential change |
|---|---|---|---|
| Revenue | $663 million | $720 million | up 8.6% |
| Adjusted EBITDA | $266 million | $290 million | up 9.0% |
| Adjusted EBITDA margin | 40.1% | 40.3% | up 0.2pt |
Reddit CEO Steve Huffman told analysts on the first-quarter call the company had revenue growth above 60% for the seventh straight quarter, gross margins above 90%, an adjusted EBITDA margin of 40%, and cash flow topping $300 million. In Reddit’s release, Huffman said Reddit is driven by “deeply engaged communities and authentic human conversation.” Q4 Capital
Huffman put out a user target for Reddit, telling investors the platform counted almost 500 million weekly users worldwide and 200 million in the U.S. He said, “our goal is to reach 100 million daily U.S. users.” That puts U.S. user frequency in focus for the stock, not just the product. Q4 Capital
Reddit COO Jennifer Wong said people are using the platform to “validate what they read and hear elsewhere, including the responses they get from LLMs.” She reported that performance-related ads now make up more than 60% of overall ad revenue. Active advertisers are up more than 75%. Reddit Max campaigns cut cost per action by 17% and delivered 25% more conversion outcomes. Q4 Capital
Needham’s Laura Martin kept her Buy on Reddit and stuck with a $300 target as of June 24, according to Benzinga data. Benzinga also reported the average target for Reddit from Needham, Loop Capital and Piper Sandler is $258.33, which is about 29.5% higher than where Reddit trades now. Barron’s quoted Martin earlier saying Reddit lacks “high-quality substitutes at similar scale,” a description that still sums up the key pitch on the data side. Benzinga
Valuation is the risk here. Reddit’s market cap stood near $40.7 billion as of Monday, putting the stock at about 57 times earnings by market data. Any minor slip in daily user numbers or ad rates could weigh on a stock that’s already pricing in high margins.
Reddit is set to shift its user reporting next quarter. CFO Drew Vollero told analysts “Q2 2026 will be the last period” the company breaks out logged-in and logged-out DAUq. Starting Q3, Reddit will report U.S. and International DAUq and WAUq. Q4 Capital
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