Key Takeaways
- Reddit’s share price has declined 36% year-to-date in 2026, making Thursday’s first quarter results critical for restoring investor sentiment.
- Wall Street consensus calls for first quarter revenue of $608 million with adjusted earnings per share of $0.57.
- Ad revenue projections point to a 58% year-over-year increase, reaching $567 million.
- Daily active user expansion is anticipated to decelerate to 16%, down from 30.7% in the prior year period.
- Analyst consensus price target of $223.34 represents significant upside from the current trading level near $148.40.
Reddit approaches Thursday’s quarterly report under pressure. Shares have tumbled 36% during 2026, though the stock remains substantially higher — up approximately 326% — from its March 2024 initial public offering price of $34.
The company releases results after market close Thursday. Analysts surveyed by FactSet anticipate adjusted earnings of $0.57 per share alongside revenue of $608 million.
Reddit exceeded projections in its previous quarterly announcement, delivering revenue of $725.6 million — representing 69.7% year-over-year expansion — while also surpassing EBITDA expectations. This performance establishes elevated benchmarks for the current period.
For the first quarter, the Street is modeling revenue expansion of approximately 55% compared to the year-ago period. This represents a moderation from the 61.5% growth rate Reddit achieved in Q1 of the previous year.
Daily active user metrics are drawing particular scrutiny. The platform disclosed 52.5 million DAUs in its most recent quarter, marking 9.4% year-over-year growth. First quarter forecasts call for worldwide DAU growth of 16% — notably slower than the 30.7% expansion recorded in the comparable quarter last year.
This deceleration has triggered concern among some market participants, especially as artificial intelligence applications including ChatGPT, Google AI Overviews, and competing services provide users alternative methods to access information without engaging the platform.
Ad Revenue Projections Look Stronger
The advertising business presents a more positive outlook. Wall Street projects first quarter advertising revenue of $567 million, representing a 58% surge versus the prior year period.
Jefferies analyst John Colantuoni, who maintains a Buy rating with a $250 target, observed in mid-April that discussions with advertisers indicated “resilient digital budgets” and “particularly strong trends” specific to Reddit.
The company is marketing itself as a service that artificial intelligence cannot readily duplicate — a venue founded on authentic human perspectives and community dialogue. This forms the foundation of the bullish investment thesis.
D.A. Davidson analyst Wyatt Swanson articulated this perspective on April 21, stating that Reddit “remains incredibly under-monetized relative to peers” and has established itself as a “human-first social platform.” He assigns a Buy rating with a $200 price objective.
Peer Company Performance Provides Context
Recent results from comparable consumer internet companies offer perspective. Booking delivered 16.2% revenue growth for Q1, matching analyst expectations. Coursera reported 9.1% growth and subsequently declined 11.6% following its announcement.
Reddit has consistently outperformed Wall Street forecasts, and analyst estimates have remained largely unchanged over the past 30 days — suggesting limited expectation of major deviations.
During the past month, consumer internet equities have advanced an average of 16.2%. Reddit has climbed 19.5% over the identical timeframe, indicating investors may have already incorporated some positive sentiment ahead of the release.
The consensus analyst price target of $223.34 suggests approximately 50% potential appreciation from the current share price around $148.40.
