Reddit (RDDT) Stock and Company Overview as of September 24, 2025
- Price & Momentum: RDDT closed around $237.45 on Sept 23, 2025 [1] after a mid-September pullback. Shares are up roughly 70%+ in 2025 [2], having surged from the $60s at IPO, with a 52-week range of $63.60–$282.95 [3].
- Q2’25 Results: Revenue $500M (+78% YoY) [4], net income $89M (18% of revenue, EPS $0.45) [5]. Ad sales were $465M (+84% YoY, ~93% of total revenue) [6], Other (data licensing/AI deals) $35M (+24%) [7]. Adj. EBITDA was $167M (33% margin) [8].
- User Metrics: Daily active uniques 110.4 million (+21% YoY) [9]. Notably, U.S. ARPU jumped to $7.87 in Q2 (↑59% YoY) [10], reflecting better ad monetization. Reddit now hosts 100,000+ active communities [11].
- Guidance: Q3’25 outlook: $535–545M revenue and $185–195M adj. EBITDA [12]. This implies continued ~50–55% YoY growth. Analysts expect Q3 EPS around $0.50 (Finviz est. $0.51).
- Analyst Consensus: Street consensus is Moderate Buy (e.g. 20 Buys, 9 Holds) [13]. Average 12‑month target ~$198 [14] (Modest downside vs. current price), but many top analysts see significantly higher upside (price targets $290–$300) [15] [16].
- Expert Outlook: Wall Street is bullish. JPMorgan’s Doug Anmuth forecasts GAAP profitability by 2025 and long-term EBITDA margins near 50% [17]. Guggenheim’s Michael Morris highlighted Q2’s 78% revenue jump and Q3 guidance ~20% above consensus [18]. Needham’s Laura Martin calls RDDT a “key beneficiary” of AI, noting it “benefits from GenAI in 3 ways” (deep Google Search integration, automated translations, and new AI data deals) [19].
- Business Updates: Reddit is monetizing fast. Its ad platform rolled out AI tools (e.g. Reddit Answers Q&A, Conversation Summaries, Shopping Ads) which boosted engagement [20]. On Sept 10, Reddit launched new “Reddit Pro” publisher tools (RSS integration, AI-driven article recommendations, performance dashboards) to help media brands (The Atlantic, NBC, AP, etc.) distribute content [21] [22]. CEO Steve Huffman emphasizes search integration: the Answers feature grew to 6M weekly users and “will be integrated more deeply into the core search experience” [23]. In addition, in Aug 2024 Reddit acquired Memorable (an AI ad‑creative startup) to give advertisers “best-in-class tools” for campaign optimization [24].
- Partnerships & AI Licensing: Bloomberg/Benzinga reports Reddit is in talks with Google to revise their $60M data‑licensing deal, seeking a “dynamic pricing” model tied to AI usage [25]. (IPO filings show ~$203M in existing AI/data contracts with Google, OpenAI, Microsoft, etc. [26].) The company also partners with Sprinklr (enterprise social analytics), IAS (ad-measurement services), and others to strengthen its advertising platform.
- Community & Sentiment: Retail investors are excited. A StockTwits analysis on Sep 18 noted RDDT sentiment was “bullish” with message volume spiking ~427% [27]. The investor subreddit (r/RDDT) is active – Reddit even crowdsources earnings questions from that community [28]. Institutional interest is rising too: Reddit will join the Russell 3000 effective June 2025 [29] and is viewed as a likely candidate for S&P 500 inclusion at the next rebalance [30].
Current Stock Price & Trend
Reddit (NYSE: RDDT) stock is trading near its all-time highs after a dramatic run-up. Finviz reports a close of $237.45 on Sep 23, 2025 [31] (after a mid-week sell‑off), up roughly 70%+ for the year [32]. The stock hit an intraday peak near $282 in mid‑Sep (52-week high $282.95) [33] before pulling back on profit-taking. Volatility has been high; for example, on Sept 23, RDDT traded down ~8% intraday to $246.39 [34] before settling near $237. Its 50-day moving average (~$210) and 200-day (~$150) remain far below current levels [35].
Recent News & Developments
AI/Google Deal Talks. In mid‑Sep 2025, Reuters/Bloomberg (via Benzinga) reported Reddit is renegotiating its content‑licensing deal with Google. The original $60M agreement (late 2023) is being revisited to better capture Reddit’s value to Google’s AI/search services [36]. The news initially sent RDDT up ~6%, although shares later pulled back. The discussions underscore Reddit’s premium data: as Benzinga notes, filings already list ~$203M in multi-year AI licensing deals with Google, OpenAI, Microsoft and others [37].
Analyst Upgrades. Wall Street has been raising targets on RDDT. On Sept 15, Needham’s Laura Martin maintained a Buy and raised her target to $300 (from $215), citing Reddit’s AI-driven productivity gains [38]. Days later, on Sept 18 Citizens/JMP analyst Andrew Boone hiked his target to $300 (from $225), saying Reddit is well-positioned for “growth triggers” (a new feed, Answers in search, monetization gains) through 2026 [39]. Piper Sandler similarly lifted its target to $290 (from $210) while reaffirming a Buy, after seeing strong ad metrics and new product launches [40]. Overall, Stocktwits reported that RDDT had gained 70% in 2025 and that retail sentiment remained “bullish” during this rally [41] [42].
Product/Publisher Tools. On Sept 10, TechCrunch reported Reddit introduced new free tools for publishers (under its Reddit Pro suite) to track stories and suggest relevant subreddits [43]. For example, publishers (e.g. The Atlantic, NBC News, AP) can sync RSS feeds and get AI-driven recommendations on where to share content [44]. This move aligns with CEO Steve Huffman’s push to make Reddit “more suited for publishers” and underscores Reddit’s ambition to become a better search platform [45]. Notably, Reddit also ceased displaying subreddit member counts in favor of a 7-day active user metric, highlighting engagement over raw followers [46].
Other News. On Sept 23, stock reports noted RDDT shares briefly dipped on light volume [47]. No major negative headlines emerged – insiders modestly sold shares (CFO Andrew Vollero sold 30,000 in early Sep [48], CEO Huffman sold 18,000 in late Aug). Media outlets are increasingly covering RDDT’s rise: for example, StockAnalysis noted Reddit’s all-time-high $261 on Sept 9 [49], and MarketWatch flagged RDDT as a likely S&P 500 addition at the next index rebalance [50]. (Reddit was already added to the Russell 3000 on June 27, 2025 [51], broadening its investor base.)
Q2’25 Financials & Guidance
On July 31, 2025 Reddit crushed its Q2 expectations. Total revenue was $500.0M, up 78% year‑over‑year [52]. This far exceeded analysts’ consensus (~$424M). The results made Reddit GAAP profitable: net income of $89.0M (18% margin) vs. a year-ago loss, and diluted EPS $0.45 [53]. Adjusted EBITDA was $167M (33% of revenue) [54], and operating cash flow was $111M.
Most revenue still comes from advertising – Q2 ad sales hit $465M (up 84% YoY) [55]. Other revenue (mainly data‑licensing and Reddit Premium) was $35M (+24%) [56]. Notably, U.S. advertisers are paying much more: eMarketer reports U.S. ARPU is now $7.87 (+59% YoY) [57], a clear sign of stronger monetization. Daily Active Uniques averaged 110.4 million in Q2 (+21%) [58], with international growth (+32%) outpacing U.S. (+11%). CEO Steve Huffman summed up the results as proof of Reddit’s momentum, noting in his shareholder letter that “our communities show how valuable conversation and knowledge really are,” and reaffirming a focus on global scaling and making Reddit “the most trusted place on the internet” [59].
For Q3 2025, management gave strong guidance: revenue of $535–545M and Adj. EBITDA of $185–195M [60]. Even at the low end, that implies ~55% year-over-year growth. (For reference, Finviz shows analysts expecting ~$545M revenue and $0.51 EPS for Q3.) These targets suggest Reddit remains on track to well exceed $2B+ revenue for 2025, with profitability accelerating.
Business Model, Revenue Streams & Partnerships
Reddit’s model is primarily ad-driven: most revenue comes from interest‑targeted ads and promoted posts in niche communities. The company has dramatically improved its ad product suite with AI. In Q2, it launched features like Reddit Answers (a ChatGPT‑style Q&A), Conversation Summaries, and Shopping Ads, which are yielding higher engagement and click-throughs [61]. (For example, Answers exploded from 1M to 6M weekly users between Q1 and Q2 [62].) Huffman has noted that integrating Answers into Reddit’s search is a priority to enhance discovery [63].
On the enterprise side, Reddit is expanding how brands use the platform. Last year it opened up an Ads API (Sprinklr was its first API partner) and this summer introduced publisher‑focused tools (TechCrunch report above [64]). Advertisers can now manage campaigns and access new analytics via third parties like Sprinklr. Reddit also works with measurement partners: in early 2025 it teamed with Integral Ad Science to add viewability, fraud and brand-safety metrics for Reddit ads [65].
Perhaps most importantly, Reddit is leveraging its treasure trove of data. It has already inked content‑licensing deals with Google and OpenAI (among others) for AI training. Those deals formed a modest but growing “other revenue” stream (Q2’s $35M) [66]. Bloomberg sources say Reddit seeks to expand such deals: negotiations with Google aim for a more dynamic pricing tied to content usage in AI and search [67]. IPO filings confirm ~$203M total in AI/data agreements so far [68]. These licensing revenues complement advertising and could be a long-term growth tailwind.
(As a related note, Reddit continues to invest in ad technology. In Aug 2024 it acquired Memorable, an AI platform for optimizing ad creative. Goodwin Press notes this gives Reddit advertisers “AI’s best-in-class tools to enhance campaign planning and drive higher performance” [69].)
Analyst Commentary & Forecasts
Wall Street is overwhelmingly bullish on RDDT. On Sept 15 Needham’s Laura Martin (a well-known tech analyst) reiterated a Buy and lifted her 12‑month target to $300 [70], calling Reddit a major beneficiary of generative AI. In her note Martin explained that Reddit “benefits from GenAI in 3 ways” – with Google Search, automated translations to expand non-English reach, and renewed data deals with OpenAI/Google Gemini [71]. JPMorgan’s Doug Anmuth similarly points to user growth and ad momentum; he predicts Reddit will turn GAAP-profit in 2025 and hit ~50% EBITDA margins long-term [72]. Guggenheim’s Michael Morris highlighted the 78% Q2 revenue jump and guided-weary investors by noting Q3 expectations were ~20% above consensus [73].
Even mid‑range analysts see room to run. StockAnalysis reports 25 covering analysts have an average “Buy” rating on RDDT, with a consensus 12‑month target of ~$197.7 [74] (about 17% below current levels, reflecting some profit-taking). However, the distribution is skewed: the lowest target is $75, the highest $300 [75]. Recently, in addition to Needham’s $300, JMP/Citizens now sees $300 [76] and Piper Sandler $290 [77]. Overall, Institutional Brokers’ Estimate System (I/B/E/S) shows most estimates still rising for 2026 and 2027 as well.
In short, analysts expect Reddit’s rapid growth to continue improving profitability. A Seeking Alpha bullish thesis notes, “AI-powered tools and high-profile licensing deals… underlie strong user and revenue growth” [78]. Even skeptics acknowledge RDDT’s unique position: its communities offer “authentic user content” that now appeals to advertisers and AI teams. As one macro strategist put it, the stock “can go quite a bit higher” if tech earnings keep beating targets [79].
Market & Retail Sentiment
Investor enthusiasm for Reddit remains high. On social media RDDT ranks as a “buzz stock” among retail traders. A StockTwits news report (Sept 18) observed that although the stock spiked 4% that day, the community buzz was even hotter: sentiment was graded “bullish” and chat volume jumped 427% in 24 hours [80]. Many users on trading forums are calling RDDT a top AI/tech play and eyeing the $300 level.
The company also engages its own user-investors in a novel way: for each earnings call Reddit invites questions from r/RDDT (its investor subreddit) and posts management’s answers on the site [81]. This unique transparency keeps the engaged Reddit community (and retail crowd) closely tuned to fundamentals and product news.
Institutionally, Reddit’s profile is rising. Its June 2025 inclusion in the Russell 3000 [82] means more funds hold the stock now. MarketWatch even suggested Reddit is on deck for the S&P 500 at the next rebalance [83]. The market cap (~$44B as of late Sep) and growth justify this consideration. Big shareholders like UBS, Vanguard and BlackRock have significant positions. Meanwhile, insiders still hold a large stake (~34% [84]), signaling confidence.
As Reddit scales its business, both retail and professional investors are watching closely. The consensus is optimistic: advertising and AI trends are expected to sustain the current rally. If RDDT delivers on its Q3 targets and secures the new Google deal, many analysts predict the stock can break well above its recent highs. “We raise our FY25 and FY26 estimates… owing to GenAI and rising labor productivity,” Needham’s Martin wrote, underscoring the widespread view that Reddit’s best days may lie ahead [85].
Sources: Company press releases [86] [87]; Yahoo/MarketBeat/Finviz summaries [88] [89]; TechCrunch [90] [91]; eMarketer analysis [92] [93]; analyst commentary via StreetInsider and Benzinga [94] [95]; StockTwits community reports [96] [97]; official investor relations posts. All figures are as of Sept. 24, 2025.
References
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