
Reddit Inc (RDDT) Stock Forecast & Price Target
Reddit Inc (RDDT) Analyst Ratings
Bulls say
Reddit demonstrated strong financial performance in the fourth quarter of 2024, achieving a remarkable 71% year-over-year revenue growth, reaching $428 million, with advertising revenue alone up 60% to $395 million. The platform's active user engagement also surged, as daily active users (DAUs) hit 101.7 million, reflecting a 39% increase year-over-year, supported by a significant growth in international markets and a noteworthy rise in average revenue per user (ARPU) of 23%. Additionally, the strong gross margin of 92.6% represents a substantial expansion of 410 basis points year-over-year, indicating improved profitability and operational efficiency amid the rising user base and advertising demand.
Bears say
The analyst highlights several fundamental concerns regarding Reddit's financial outlook, particularly its dependence on Google (GOOGL), which poses a risk following a recent algorithm change that negatively impacted user engagement. Additionally, there are worries about slowing user growth and a decrease in Average Revenue Per User (ARPU), further compounded by the potential for higher costs from international expansion and regulatory hurdles affecting data licensing. The report also indicates a softening global advertising market, which could adversely affect Reddit's revenue generation capabilities.
This aggregate rating is based on analysts' research of Reddit Inc and is not a guaranteed prediction by Public.com or investment advice.
Reddit Inc (RDDT) Analyst Forecast & Price Prediction
Start investing in Reddit Inc (RDDT)
Order type
Buy in
Order amount
Est. shares
0 shares