Overview
- Citi cut its Reddit price target to $245 (Buy), Wells Fargo moved to $196 (Equal Weight), Baird to $200 (Neutral), and Goldman Sachs to $206 (Neutral) following the Q4 report and recent volatility.
- Director Sarah Farrell bought 50,500 shares for about $7.48 million on Feb. 10–11 through Waygrove Partnership LP, lifting her beneficial ownership by more than 600%, according to an SEC filing.
- Despite the trims, the stock carried a Moderate Buy rating as of Feb. 12 with an average projected upside of roughly 81% versus recent trading levels.
- Reddit posted Q4 2025 revenue of $726 million, up 70% year over year, with diluted EPS of $1.24, and guided Q1 2026 revenue to $595–$605 million with adjusted EBITDA expected above estimates.
- Management is driving growth with AI‑powered advertising tools and high‑margin data licensing, is prioritizing logged‑in engagement, and has board approval in place for a $1 billion share repurchase program.