Reddit's Technical Outlook Becomes Positive
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 17 2026
0mins
Should l Buy RDDT?
Source: Barron's
- Recent Damage in Technology: The technology sector, especially software, has experienced significant and noticeable damage recently.
- Market Performance: Following three years of over 20% gains for the Nasdaq, a market correction was anticipated.
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Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 140.960
Low
207.00
Averages
260.00
High
325.00
Current: 140.960
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
MicroStrategy Faces Bitcoin Yield Challenges Amid Bearish Sentiment
- Bitcoin Holdings: MicroStrategy holds 713,502 BTC as of 2025, despite a 56.9% drop in stock price to $138, maintaining its position as the largest U.S. equity issuer, demonstrating its commitment to Bitcoin investment.
- Yield Target Missed: The FY2025 BTC Yield was 22.8%, falling short of the 30% target, although each share represents more Bitcoin than before, which may undermine investor confidence in the company's future profitability.
- Dilution Risk: The company experienced a 52.6% expansion in share count in 2025, increasing from approximately 192.5 million to nearly 294 million shares, raising concerns about the management's capacity to dilute common shareholders' interests, especially amid falling Bitcoin prices.
- Bearish Market Sentiment: Reddit sentiment scores range from 28 to 30, indicating a pessimistic outlook among investors for MicroStrategy, despite 13 out of 14 analysts rating it a buy with a target price near $332.67, reflecting a divergence in market perceptions of its long-term potential.
See More
Is the Drop in Reddit's Stock a Chance to Buy?
Reddit's Stock Performance: Reddit's stock (RDTT) has faced significant declines, dropping over 43% year-to-date and nearly 48% from its all-time high in September 2025, largely due to reduced reliance on the platform for content sourcing by AI tools like ChatGPT.
Financial Growth and Revenue: Despite challenges, Reddit reported a 75% year-over-year revenue growth in Q4 2025, reaching $690 million, and has set guidance for Q1 2026 revenue between $595 million and $605 million, indicating a potential 53% growth.
User Engagement and Advertising: The platform has seen a rise in daily active users, with over 121 million users welcomed in Q4 alone, which is a 19% increase year-over-year, contributing to a positive outlook for advertising revenue.
Analyst Ratings and Market Sentiment: Analysts maintain a consensus rating of "Moderate Buy" for Reddit, with a price target suggesting nearly 78% upside potential, reflecting confidence in the company's future despite recent stock performance challenges.
See More
Reddit Emerges as Fastest-Growing Social Media Company
- Rapid User Growth: Reddit is recognized as one of the fastest-growing social media companies globally, with a continuously increasing user base that highlights its strong appeal and market potential in the social platform sector.
- Positive Stock Performance: As of the afternoon of March 19, 2026, Reddit's stock price rose by 1.25%, reflecting optimistic market expectations for its future development, which may attract more investor interest.
- Video Content Release: On March 21, 2026, Reddit published a new video, further enhancing its content diversity aimed at attracting a broader user base and increasing user engagement.
- Competitive Market Advantage: With its rapidly growing user base and positive stock performance, Reddit demonstrates significant competitive advantages in the fiercely competitive social media market, potentially solidifying its market position.
See More
Reddit Excluded from Top Investment Stocks List
- Social Media Growth: Reddit is recognized as one of the fastest-growing social media companies globally; however, it was not included in the top 10 stocks recommended by investors, indicating a cautious market outlook on its future performance.
- Investment Return Comparison: According to The Motley Fool, previously recommended stocks like Netflix and Nvidia achieved returns of 495,179% and 1,058,743% respectively after their recommendations, highlighting the potential risks of Reddit's exclusion from such lists.
- Market Performance Analysis: The average return of Stock Advisor stands at 898%, significantly outperforming the S&P 500's 183%, suggesting that investors should be more discerning in their stock selections, particularly regarding Reddit's investment prospects.
- Analyst Perspective: Although The Motley Fool recommends Reddit, analyst Parkev Tatevosian holds no positions in any related stocks, reflecting differing views on the company's future performance, prompting investors to weigh risks against potential rewards.
See More
Reddit's Lawsuit Against Anthropic Moves Back to State Court
- Lawsuit Progress: The U.S. District Court for the Northern District of California tentatively granted Reddit's motion to remand its lawsuit against Anthropic back to state court, indicating that the court believes Reddit's claims involve qualitatively different rights than those protected by copyright law.
- Legal Arguments: Reddit's lawsuit alleges breach of contract and unjust enrichment, while Anthropic has attempted to keep the case in federal court by arguing that Reddit's claims implicate federal copyright law; however, the court found that these claims do not seek rights equivalent to those protected by copyright.
- Market Reaction: Following the court's preliminary ruling, Reddit (RDDT) stock jumped nearly 3% on Friday, reflecting positive investor sentiment regarding the case's progress, despite the company's shares having fallen 40% year-to-date.
- User Sentiment: On the Stocktwits platform, retail sentiment around RDDT stock trended in 'neutral' territory amid high message volume, with one user predicting that Reddit would either win the case or reach a settlement with Anthropic in light of the AI firm's potential IPO.
See More
Directors of Reddit and Grocery Outlet Increase Stock Holdings
- Executive Purchases: Reddit Director Sarah E. Farrell purchased 10,500 shares of RDDT at $132.26 each on Friday, totaling an investment of $1.39 million, with current holdings up about 11%, indicating confidence in the company's future performance.
- Trading Performance: Farrell's latest purchase has yielded significant gains at the current trading high of $146.75, while Reddit's stock rose approximately 0.2% on the day, reflecting positive market sentiment towards the stock.
- Historical Transactions: Over the past year, Farrell also bought 748,000 shares at $148.16 each, demonstrating a consistent investment strategy and confidence in Reddit's prospects.
- Grocery Outlet Activity: On the same day, Director Erik D. Ragatz bought 116,003 shares of Grocery Outlet at $6.06 each for a total investment of $702,618, indicating executive optimism about the company's growth potential.
See More
MicroStrategy Faces Bitcoin Yield Challenges Amid Bearish Sentiment
- Bitcoin Holdings: MicroStrategy holds 713,502 BTC as of 2025, despite a 56.9% drop in stock price to $138, maintaining its position as the largest U.S. equity issuer, demonstrating its commitment to Bitcoin investment.
- Yield Target Missed: The FY2025 BTC Yield was 22.8%, falling short of the 30% target, although each share represents more Bitcoin than before, which may undermine investor confidence in the company's future profitability.
- Dilution Risk: The company experienced a 52.6% expansion in share count in 2025, increasing from approximately 192.5 million to nearly 294 million shares, raising concerns about the management's capacity to dilute common shareholders' interests, especially amid falling Bitcoin prices.
- Bearish Market Sentiment: Reddit sentiment scores range from 28 to 30, indicating a pessimistic outlook among investors for MicroStrategy, despite 13 out of 14 analysts rating it a buy with a target price near $332.67, reflecting a divergence in market perceptions of its long-term potential.
See More
Is the Drop in Reddit's Stock a Chance to Buy?
Reddit's Stock Performance: Reddit's stock (RDTT) has faced significant declines, dropping over 43% year-to-date and nearly 48% from its all-time high in September 2025, largely due to reduced reliance on the platform for content sourcing by AI tools like ChatGPT.
Financial Growth and Revenue: Despite challenges, Reddit reported a 75% year-over-year revenue growth in Q4 2025, reaching $690 million, and has set guidance for Q1 2026 revenue between $595 million and $605 million, indicating a potential 53% growth.
User Engagement and Advertising: The platform has seen a rise in daily active users, with over 121 million users welcomed in Q4 alone, which is a 19% increase year-over-year, contributing to a positive outlook for advertising revenue.
Analyst Ratings and Market Sentiment: Analysts maintain a consensus rating of "Moderate Buy" for Reddit, with a price target suggesting nearly 78% upside potential, reflecting confidence in the company's future despite recent stock performance challenges.
See More
Reddit Emerges as Fastest-Growing Social Media Company
- Rapid User Growth: Reddit is recognized as one of the fastest-growing social media companies globally, with a continuously increasing user base that highlights its strong appeal and market potential in the social platform sector.
- Positive Stock Performance: As of the afternoon of March 19, 2026, Reddit's stock price rose by 1.25%, reflecting optimistic market expectations for its future development, which may attract more investor interest.
- Video Content Release: On March 21, 2026, Reddit published a new video, further enhancing its content diversity aimed at attracting a broader user base and increasing user engagement.
- Competitive Market Advantage: With its rapidly growing user base and positive stock performance, Reddit demonstrates significant competitive advantages in the fiercely competitive social media market, potentially solidifying its market position.
See More
Reddit Excluded from Top Investment Stocks List
- Social Media Growth: Reddit is recognized as one of the fastest-growing social media companies globally; however, it was not included in the top 10 stocks recommended by investors, indicating a cautious market outlook on its future performance.
- Investment Return Comparison: According to The Motley Fool, previously recommended stocks like Netflix and Nvidia achieved returns of 495,179% and 1,058,743% respectively after their recommendations, highlighting the potential risks of Reddit's exclusion from such lists.
- Market Performance Analysis: The average return of Stock Advisor stands at 898%, significantly outperforming the S&P 500's 183%, suggesting that investors should be more discerning in their stock selections, particularly regarding Reddit's investment prospects.
- Analyst Perspective: Although The Motley Fool recommends Reddit, analyst Parkev Tatevosian holds no positions in any related stocks, reflecting differing views on the company's future performance, prompting investors to weigh risks against potential rewards.
See More
Reddit's Lawsuit Against Anthropic Moves Back to State Court
- Lawsuit Progress: The U.S. District Court for the Northern District of California tentatively granted Reddit's motion to remand its lawsuit against Anthropic back to state court, indicating that the court believes Reddit's claims involve qualitatively different rights than those protected by copyright law.
- Legal Arguments: Reddit's lawsuit alleges breach of contract and unjust enrichment, while Anthropic has attempted to keep the case in federal court by arguing that Reddit's claims implicate federal copyright law; however, the court found that these claims do not seek rights equivalent to those protected by copyright.
- Market Reaction: Following the court's preliminary ruling, Reddit (RDDT) stock jumped nearly 3% on Friday, reflecting positive investor sentiment regarding the case's progress, despite the company's shares having fallen 40% year-to-date.
- User Sentiment: On the Stocktwits platform, retail sentiment around RDDT stock trended in 'neutral' territory amid high message volume, with one user predicting that Reddit would either win the case or reach a settlement with Anthropic in light of the AI firm's potential IPO.
See More
Directors of Reddit and Grocery Outlet Increase Stock Holdings
- Executive Purchases: Reddit Director Sarah E. Farrell purchased 10,500 shares of RDDT at $132.26 each on Friday, totaling an investment of $1.39 million, with current holdings up about 11%, indicating confidence in the company's future performance.
- Trading Performance: Farrell's latest purchase has yielded significant gains at the current trading high of $146.75, while Reddit's stock rose approximately 0.2% on the day, reflecting positive market sentiment towards the stock.
- Historical Transactions: Over the past year, Farrell also bought 748,000 shares at $148.16 each, demonstrating a consistent investment strategy and confidence in Reddit's prospects.
- Grocery Outlet Activity: On the same day, Director Erik D. Ragatz bought 116,003 shares of Grocery Outlet at $6.06 each for a total investment of $702,618, indicating executive optimism about the company's growth potential.
See More
