The Goldman Sachs Group Issues Pessimistic Forecast for Reddit (NYSE:RDDT) Stock Price

Reddit (NYSE:RDDT) had its target price dropped by equities researchers at The Goldman Sachs Group from $215.00 to $140.00 in a report released on Friday. The Goldman Sachs Group‘s target price points to a potential upside of 53.43% from the company’s previous close.

Other equities research analysts have also issued research reports about the company. Robert W. Baird set a $185.00 price target on Reddit in a research note on Friday, July 31st. Raymond James Financial restated a “strong-buy” rating and issued a $205.00 price objective on shares of Reddit in a research report on Monday, August 17th. Bank of America reaffirmed a “neutral” rating and issued a $135.00 price objective (down from $190.00) on shares of Reddit in a research note on Friday. Zacks Research upgraded Reddit from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, October 27th. Finally, B. Riley Financial decreased their target price on Reddit from $270.00 to $190.00 and set a “buy” rating on the stock in a research note on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and fifteen have issued a Hold rating to the stock. Based on data from MarketBeat.com, Reddit has a consensus rating of “Moderate Buy” and a consensus price target of $180.91.

Reddit Stock Performance

Shares of RDDT traded down $0.48 during mid-day trading on Friday, reaching $91.25. The stock had a trading volume of 9,015,418 shares, compared to its average volume of 5,541,294. The business has a fifty day moving average of $150.37 and a 200 day moving average of $160.26. The firm has a market cap of $17.56 billion, a price-to-earnings ratio of 18.68, a PEG ratio of 0.42 and a beta of 2.05. Reddit has a 12 month low of $89.28 and a 12 month high of $263.50.

Reddit (NYSE:RDDT) last announced its quarterly earnings data on Thursday, October 29th. The company reported $1.40 EPS for the quarter, beating the consensus estimate of $1.33 by $0.07. Reddit had a net margin of 32.10% and a return on equity of 30.57%. The firm had revenue of $894.96 million for the quarter, compared to the consensus estimate of $874.91 million. During the same period last year, the firm earned $0.80 EPS. The company’s revenue was up 53.0% on a year-over-year basis. On average, research analysts forecast that Reddit will post 5.28 EPS for the current fiscal year.

Insider Buying and Selling at Reddit

In other Reddit news, CEO Steve Huffman sold 17,308 shares of the business’s stock in a transaction on Tuesday, October 13th. The shares were sold at an average price of $158.57, for a total value of $2,744,529.56. Following the sale, the chief executive officer owned 336,432 shares in the company, valued at $53,348,022.24. The trade was a 4.89% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Robert Sauerberg sold 5,128 shares of the stock in a transaction dated Tuesday, August 25th. The shares were sold at an average price of $159.92, for a total transaction of $820,069.76. Following the transaction, the director directly owned 27,087 shares of the company’s stock, valued at $4,331,753.04. This trade represents a 15.92% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last ninety days, insiders have sold 306,052 shares of company stock worth $49,754,523. Insiders own 28.48% of the company’s stock.

Hedge Funds Weigh In On Reddit

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. State Street Corp grew its holdings in Reddit by 8.7% during the 2nd quarter. State Street Corp now owns 2,979,587 shares of the company’s stock valued at $517,197,000 after buying an additional 237,523 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of Reddit by 21.8% during the 2nd quarter. Wellington Management Group LLP now owns 1,564,535 shares of the company’s stock worth $271,572,000 after acquiring an additional 280,030 shares in the last quarter. DSM Capital Partners LLC raised its holdings in shares of Reddit by 5.3% during the 1st quarter. DSM Capital Partners LLC now owns 848,206 shares of the company’s stock worth $114,211,000 after acquiring an additional 42,808 shares in the last quarter. Robeco Institutional Asset Management B.V. boosted its position in shares of Reddit by 74.6% during the 3rd quarter. Robeco Institutional Asset Management B.V. now owns 809,063 shares of the company’s stock valued at $115,243,000 after acquiring an additional 345,735 shares during the last quarter. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its position in shares of Reddit by 8.9% during the 2nd quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 481,893 shares of the company’s stock valued at $83,647,000 after acquiring an additional 39,540 shares during the last quarter.

Key Headlines Impacting Reddit

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit’s latest quarterly results showed substantial operating momentum: revenue rose 53% year over year to approximately $895 million, while earnings per share exceeded analyst expectations. Advertising engagement and higher average revenue per user could support the company’s long-term monetization outlook. Reddit: Google Is Taking Its Traffic, But The Selloff Has Gone Too Far
• Positive Sentiment: Some investors view the decline as excessive relative to Reddit’s revenue growth and profitability, arguing that fears over Google’s AI search changes may already be reflected in the valuation. Reddit Stock Crashes Again: Is the Stock a Buy on the Dip or a Value Trap?
• Neutral Sentiment: A valuation comparison with Spotify highlights Reddit as a potential value opportunity, but the conclusion depends on whether investors prioritize Reddit’s faster growth or Spotify’s more established user and revenue trends. RDDT vs. SPOT: Which Stock Is the Better Value Option?
• Negative Sentiment: The primary pressure is a worsening user-growth outlook. Google’s AI search changes appear to be reducing traffic to Reddit, particularly in the U.S., while management’s push toward logged-in users could protect monetization but make it harder and more expensive to attract new users. Reddit Stock Plunges After Google AI Cuts U.S. Traffic
• Negative Sentiment: Several firms reduced their ratings or price targets, including JPMorgan, Evercore, Loop Capital, Oppenheimer, Citigroup, Cantor Fitzgerald, Truist, Wells Fargo and Wedbush. Although many revised targets remain above the current market level, the broad analyst caution is weighing on confidence in RDDT’s near-term outlook.

About Reddit

Reddit, Inc operates a global online platform where users participate in communities organized around shared interests, topics and activities. Members can submit text posts, links, images and videos, as well as comment on and vote on content. The platform includes thousands of communities, commonly known as subreddits, covering subjects such as news, entertainment, technology, sports, finance and lifestyle.

Reddit generates revenue primarily through digital advertising, offering advertisers access to audiences based on community interests and user engagement.