Reddit Q2 Revenue Jumps 78%—Analysts Remain Cautious Despite The Surge

Reddit Inc.‘s (NYSE:RDDT) recent stock surge highlights a broader trend of tech companies outperforming expectations this earnings season, driven by robust user engagement and advertising growth. This momentum sets the stage for a detailed analysis of Reddit’s financial performance and the varied reactions from industry analysts.

Shares of Reddit rallied in early trading on Friday, after the company on Thursday reported upbeat second-quarter results.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

JPMorgan On Reddit

Analyst Doug Anmuth reiterated a Neutral rating, while raising the price target from $145 to $190.

After softness in April, Reddit users gained traction through the quarter, Anmuth said in a note. The company finished the second quarter with more than 110 million daily active unique users (DAUq), he added.

The platform added DAUs across both the U.S. and international in July, the analyst stated. "We believe 50% L-T Adj. EBITDA margins may be achievable over time, and we project RDDT reaching GAAP OI & NI profit for full-year 2025," he further wrote.

Guggenheim Securities On Reddit

Analyst Michael Morris maintained a ...