New York, Feb 9, 2026, 11:26 AM EST — Regular session remains underway.
- Reddit shares added roughly 2% in morning trading, bouncing back after last week’s post-earnings swings.
- Analysts shuffled price targets, spotlighting user numbers and how ad revenue is tracking.
- This week, all eyes are on U.S. jobs and inflation numbers—investors see both as key hurdles for growth stocks in the days ahead.
Reddit Inc climbed roughly 2% to $142.68 as of 11:26 a.m. EST, swinging between $137.09 and $145.75 in a volatile morning. The Invesco QQQ, which tracks the Nasdaq, picked up about 0.7%. Meta Platforms edged up close to 1%, with Pinterest also tacking on around 1.2%.
Reddit shares are clawing back some ground after a steep drop in the wake of its quarterly results—a slide that’s left investors debating if recent user numbers are weighing more on the stock than progress with ad products. The analyst focus has moved toward logged-in user growth and how that’s shaping ad-targeting strategies.
Reddit reported a 70% jump in fourth-quarter revenue to $726 million on Feb. 5, with daily active uniques climbing 19% to 121.4 million. The board signed off on a share buyback program of as much as $1 billion. For the first quarter, Reddit’s outlook calls for revenue between $595 million and $605 million, crediting AI-powered ad products for the lift. Expectations ran high, but the numbers still managed to catch some off guard, said Emarketer senior director Jeremy Goldman.
Truist’s Youssef Squali bumped his Reddit price target to $275, sticking with a buy. He described Reddit as a hub for “authentic human conversations” while generative AI continues to proliferate online. Squali flagged features like Search & Answers, shopping ads, and automation as key drivers. TipRanks
Guggenheim bumped its price target on Reddit up to $255 from $245, after the company once more topped its own guidance for both revenue and profit. The firm also pointed to ongoing potential for gains in user numbers, engagement and ad revenue.
Some firms are holding a positive stance but have pulled back on their price targets, saying the stock is moving in line with the broader online media sector. Needham stood by its buy call and left the $300 target in place. Over at Morgan Stanley, analysts kept their buy rating but cut their target, pointing to a more guarded outlook on user growth.
Piper Sandler lowered its price target to $205 from $290, sticking with an overweight rating but warning about “multiple contraction,” that is, investors not paying as much for each dollar of earnings. Over at BofA, analysts also trimmed their target to $205, maintaining a neutral view. They see better execution, but the stock’s valuation remains lofty. TipRanks
Goldman Sachs cut its price target on Reddit to $206 from $236, sticking with a neutral rating. Analysts pointed to a pickup in user numbers, but said most of the increase came from people not logged in. The bank flagged that Reddit’s next big challenge is turning those visitors into signed-in users, while also keeping growth and margins in check as the company spends more on brand ads, expanding its sales team, and AI licensing.
Still, the risks haven’t disappeared. Should logged-in user growth lose more steam, pressure on ad pricing and targeting might build—right when marketers are taking a more guarded approach. Even with healthy revenue gains, valuation multiples could see further compression.
Macro data is back in focus for traders targeting high-growth stocks. The U.S. January jobs report lands Feb. 11, with the CPI for the same month out on Feb. 13—both releases scheduled for 8:30 a.m. ET.
