Reddit Inc (RDDT) Shares Drop 10.02% Amid Weaker Ad Agency Feedback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 15 2026
0mins
Should l Buy RDDT?
Source: Benzinga
- Weak Ad Feedback: RBC Capital's latest checks reveal that small and mid-sized ad agencies have provided softer feedback on Reddit, leading to a 10.02% drop in shares to $227.20, despite a healthy overall digital ad market for larger platforms like Google and Meta.
- Analyst Optimism: Wells Fargo's Ken Gawrelski raised Reddit's price target from $186 to $207 while maintaining an Equal Weight rating, highlighting the company's consistent execution and supportive market backdrop that could lead to a strong fourth quarter, indicating long-term growth potential.
- Mixed Technical Indicators: Reddit's stock is currently trading 4.1% below its 20-day simple moving average but 3.1% above its 100-day SMA, reflecting short-term weakness against a backdrop of long-term strength, with shares up 34.38% over the past year.
- Intensifying Market Competition: Despite improving ad market conditions, Reddit is not benefiting as much as larger competitors, with analysts noting that heightened competition and elevated expectations may limit its growth potential in the near term.
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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: 147.460
Low
207.00
Averages
260.00
High
325.00
Current: 147.460
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.
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- Product Carousel Display: The product carousel feature will appear at the bottom of search results specifically for queries related to household electronics, providing pricing, images, and direct purchase links, thereby enhancing users' purchasing decision-making capabilities.
- Instant Information Delivery: Reddit states that this feature will surface top-recommended products directly from discussions, providing users with instant product information, which aims to increase user engagement and promote shopping activities on the platform.
- Market Competition Strategy: By introducing such features, Reddit seeks to strengthen its market competitiveness in the intersection of social media and e-commerce, similar to Meta's growth strategy, while facing increasingly fierce market challenges.
See More
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- User Revenue Growth: According to Bank of America, Reddit experienced a 53% growth in Average Revenue Per User (ARPU) in the U.S. for Q4, outperforming Meta's 22% and Snap's 13%, indicating positive impacts from improved ad performance and ad load growth.
- Revenue Per Hour Growth: Reddit's Revenue Per Hour (RPH) surged by 92% in the U.S., significantly higher than Snap's 19% and Meta's 10%, demonstrating that increased ad loads and improved conversion rates are driving revenue growth.
- Time Spent Changes: In January, Instagram's daily average time spent per active user in the U.S. rose by 12%, while Reddit saw a decline of 9%, highlighting challenges with lower engagement from newer users and showcasing Instagram's advantages in content targeting.
- Mobile Download Trends: TikTok led in mobile download growth in the U.S. with a 137% increase, while Reddit faced a 36% decline, illustrating a stark contrast between TikTok's strong user acquisition performance and Reddit's user attrition.
See More
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- Investment Opportunity Analysis: The video discusses ten companies with significant upside potential, spanning various industries, aimed at providing long-term investors with diversified options to achieve capital appreciation in the future.
- Industry Diversity: The selected companies come from different sectors, reflecting a broad range of market opportunities, allowing investors to choose based on their risk preferences and investment strategies to optimize their portfolios.
- Market Timing: The stock prices mentioned are based on trading data from February 13, 2026, providing a temporal reference for investors to assess the current market environment and potential investment timing.
- Subscription and Offers: Viewers are encouraged to subscribe to the channel and click on the special offer link, indicating the creator's intention to enhance viewers' investment decision-making capabilities by providing more content and resources.
See More
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- Investment Potential Analysis: The video discusses 10 companies across various industries that could offer significant upside for long-term investors, emphasizing the importance of a diversified portfolio in the current market environment.
- Historical Return Comparison: Using Netflix and Nvidia as examples, which were recommended in 2004 and 2005 respectively, a $1,000 investment at that time would now be worth $415,256 and $1,133,904, showcasing the analysis team's stock-picking ability and its impact on future investments.
- Superior Market Performance: Stock Advisor boasts an average total return of 889%, significantly outperforming the S&P 500's 193%, indicating the team's success in identifying high-potential stocks, which attracts more investors to their recommendations.
- Community Investment Philosophy: The video highlights the importance of an investing community built by individual investors for individual investors, encouraging viewers to stay updated on the latest investment advice to achieve better returns in future markets.
See More
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- 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.
See More
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- Expanded Regulatory Powers: UK Prime Minister Keir Starmer announced that the government will seek broader authority to regulate internet access, allowing for policy reviews within months instead of years, thereby accelerating the response to emerging digital risks.
- Social Media Ban Review: The government is considering a ban on social media access for children under 16, similar to Australia's policy, with Spain, Greece, and Slovenia also evaluating similar proposals, highlighting a global focus on online safety for children.
- AI and Age Verification: The UK government plans to widen laws banning the creation of sexualized images without consent to include more AI chatbots, reflecting concerns over ethical and legal challenges posed by new technologies in the digital landscape.
- International Cooperation and Security: U.S. Secretary of State Marco Rubio reaffirmed America's commitment to the transatlantic alliance at the Munich Security Conference, warning that Europe must take greater responsibility for its security, underscoring the urgency of international cooperation in security matters.
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