Reddit (RDDT) Stock Jumps 6% as Analysts See 58% Upside From Here

TLDR

• RDDT rose 5.78% after bullish commentary from D.A. Davidson and Citigroup, who said Meta’s new Forum app is less of a threat than feared.
• Reddit will host a fireside chat at the BofA Securities 2026 Global Technology Conference and a live investor AMA.
• Q1 earnings beat expectations with EPS of $1.01 vs $0.62 estimated and revenue of $663.41M, up 69.1% year over year.
• Multiple institutional investors increased their positions, including UBS AM raising its stake by 106.3%.
• Consensus analyst rating is “Moderate Buy” with an average price target of $228.61, well above the current trading price near $144.83.

Reddit (RDDT) stock jumped 5.78% on Tuesday, trading around $144.83, as a wave of bullish analyst commentary helped it bounce back from a rough stretch that has seen the stock fall 37% year to date.

Reddit, Inc., RDDT

The rally was fueled by fresh commentary from D.A. Davidson and Citigroup, both of which pointed to resilient user traffic on the platform. The analysts argued that fears around Meta’s new Forum app — seen as a potential rival — have been overdone.

Citigroup reiterated its “market outperform” rating on the stock. Evercore also holds an “outperform” rating with a $290 price target, while B. Riley Financial has a “buy” rating with a $250 target. Out of 30 analysts covering the stock, 19 have a buy-equivalent rating and 11 have a hold.

The average price target sits at $228.61, implying roughly 58% upside from current levels.

Conference Appearances Add to the Boost

Reddit also announced it will attend the BofA Securities 2026 Global Technology Conference, where management will hold a fireside chat. The company is also planning a live investor AMA, which is seen as a move to improve transparency with the market.

These events gave investors another reason to buy in, as they signal management is leaning into communication rather than going quiet during a soft patch.

Q1 Earnings Were a Strong Beat

The current optimism has roots in Reddit’s Q1 results, reported April 30. The company posted EPS of $1.01, crushing the consensus estimate of $0.62 by $0.39. Revenue came in at $663.41 million, ahead of the $607.74 million analysts had expected.

That top-line figure represents 69.1% growth compared to the same quarter last year. Net margin came in at 28.6% and return on equity at 25.48%. Analysts now expect full-year EPS of $4.83.

A year ago, Reddit earned just $0.13 per share in the same quarter. The improvement in profitability has been swift.

Institutional buying has also picked up. Bellwether Advisors increased its stake by 118.8% in Q4, bringing its total to 20,629 units worth roughly $4.74 million. UBS AM raised its position by 106.3% in Q1, now holding 216,960 units worth $22.76 million. NewEdge Advisors boosted its stake by 143.3% in Q1.

On the insider side, CEO Steve Huffman sold 18,000 units in February at $145.12, reducing his position by 4.19%. CTO Christopher Slowe sold 15,500 units in April at $150.67. In the last 90 days, insiders have sold $39.29 million worth of stock in total.

The stock has a 12-month range of $99.14 to $282.95, and currently trades well below both its 50-day moving average of $148.11 and its 200-day moving average of $178.64.

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