
Reddit Inc (RDDT) Stock Forecast & Price Target
Reddit Inc (RDDT) Analyst Ratings
Bulls say
Reddit's strong financial performance in Q4 2024 highlights a year-over-year revenue growth of 71%, reaching $428 million, driven by a significant 60% increase in advertising revenues. The platform also experienced a remarkable 39% increase in daily active users (DAUs) year-over-year, with international DAUs growing by 46%, indicating a robust expansion in its user base. Additionally, the impressive gross margin of 92.6%, up 410 basis points, alongside strong growth across key advertising verticals, positions Reddit favorably for future growth potential.
Bears say
The financial outlook for Reddit's stock presents several concerns, primarily driven by reliance on the advertising market and dependence on Google, with the potential for regulatory scrutiny further exacerbating these risks. Key metrics indicate a slowdown in user growth, as evidenced by a quarterly decline in daily active users, and a decrease in average revenue per user (ARPU), undermining revenue potential. Additionally, the company's forecasted challenges associated with costs from international expansion and policy changes from Google heighten uncertainty regarding future financial performance.
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
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