Reddit Inc. (RDDT) has seen its stock price decline by 5.13%, hitting a 20-day low amid a challenging market environment where the Nasdaq-100 is down 1.73% and the S&P 500 is down 1.47%.
The recent relaunch of Digg, which attracted 67,000 users during its invite-only phase, poses a competitive threat to Reddit. This surge in user interest for Digg indicates a potential shift in market dynamics, as users may explore alternative platforms for community engagement. Additionally, despite Reddit receiving an A+ EPS revision grade from analysts, the stock's performance has been negatively impacted by the competitive landscape.
As competition intensifies, Reddit may need to enhance its user engagement strategies to retain its user base and mitigate the effects of emerging rivals like Digg. The market's reaction reflects concerns over Reddit's ability to maintain its growth trajectory in the face of increasing competition.
Wall Street analysts forecast RDDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RDDT is 260.00 USD with a low forecast of 207.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
Wall Street analysts forecast RDDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RDDT is 260.00 USD with a low forecast of 207.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 213.630
Low
207.00
Averages
260.00
High
325.00
Current: 213.630
Low
207.00
Averages
260.00
High
325.00
Deutsche Bank
Benjamin Black
Buy
upgrade
$255 -> $285
2026-01-20
Reason
Deutsche Bank
Benjamin Black
Price Target
$255 -> $285
AI Analysis
2026-01-20
upgrade
Buy
Reason
Deutsche Bank analyst Benjamin Black raised the firm's price target on Reddit to $285 from $255 and keeps a Buy rating on the shares.
Argus
Buy
maintain
$250 -> $300
2026-01-09
Reason
Argus
Price Target
$250 -> $300
2026-01-09
maintain
Buy
Reason
Argus raised the firm's price target on Reddit to $300 from $250 and keeps a Buy rating on the shares. The company has an impressive record of growth, and recent results are trending positively, the analyst tells investors in a research note. Argus believes Reddit's growth runway is promising, justifying the premium, at least in the near-term and during a bull market.
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Cantor Fitzgerald
Neutral
initiated
$240
2026-01-08
Reason
Cantor Fitzgerald
Price Target
$240
2026-01-08
initiated
Neutral
Reason
Cantor Fitzgerald initiated coverage of Reddit with a Neutral rating and $240 price target. The firm says Reddit is a leading digital media platform with a "differentiated" consumer value proposition and strong network effects. However, after outperformance in 2025, the stock's current valuation already reflects a bullish outlook, the analyst tells investors in a research note.
Needham
Needham
Buy
maintain
$300
2025-12-29
Reason
Needham
Needham
Price Target
$300
2025-12-29
maintain
Buy
Reason
Needham says findings from several recent whitepapers indicate Reddit is a key beneficiary of the shift to large language models and artificial intelligence driven answers. The company is "disproportionately cited" inside AI-answers, and citations are the new value driver for consumer discovery and navigation of the open internet, the analyst tells investors in a research note. As AI-answers replace links, economic benefits shift to the citations that AI-answer give, and 20%-40% of citations are to Reddit, according to recent studies, Needham contends. It keeps a Buy rating on Reddit shares with a $300 price target.
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.
