"Analysts remain bullish on Reddit's prospects, with a consensus price target of $242. That implies modest 2% upside from current levels around $238, but the Street's optimism is grounded in explosive growth. Wall Street expects revenue to continue accelerating, driven by the platform's 116 million daily active users across 100,000+ communities. As CEO Steve Huffman noted in the recent earnings call, "Reddit provides something rare on the Internet. 444 million people come here each week for authentic conversations they can't find anywhere else.""
"Reddit delivered 68% revenue growth in Q3, hitting $585 million versus the $549 million consensus. The company beat on earnings too, posting $0.80 per share against expectations of $0.52. Advertising revenue jumped 74% year over year to $549 million, while gross margins expanded to 91%. With 18 of 29 analysts rating the stock Buy or Strong Buy, the Street believes this growth trajectory has legs."
"At today's price of $238, Reddit trades at roughly 69x forward earnings. If shares hit $300, they would trade at approximately 87x forward earnings. That's expensive, even for a high-growth stock. But Reddit is growing revenue at 68% annually while achieving profitability for the first time. The company generated $183 million in free cash flow last quarter, up 158% year over year."
Reddit's shares surged year to date after the company turned profitable in Q3 2025, posting $163 million in net income following a $484 million loss in 2024. Revenue grew 68% year over year to $585 million, with advertising revenue up 74% to $549 million and gross margins expanding to 91%. Daily active users reached 116 million across more than 100,000 communities. The company generated $183 million in free cash flow last quarter, up 158% year over year. Analysts set a consensus price target of $242, and management guided Q4 revenue to $655–665 million.
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