Key Takeaways
- Reddit (RDDT) stock has declined 36% year-to-date in 2026, putting increased pressure on Thursday’s Q1 earnings release.
- Wall Street forecasts Q1 revenue of $608 million with adjusted earnings per share of $0.57.
- Ad revenue projections show a significant 58% year-over-year increase to $567 million.
- Daily active user expansion is anticipated to decelerate to 16% from the prior year’s 30.7% growth rate.
- Analyst consensus price target of $223.34 suggests substantial upside from current trading levels near $148.40.
Reddit approaches Thursday’s quarterly earnings announcement under pressure. Shares have tumbled 36% during 2026, though the social platform remains up approximately 326% from its March 2024 initial public offering price of $34.
The earnings release is scheduled for after market close Thursday. Analyst consensus calls for adjusted earnings of $0.57 per share alongside revenue of $608 million, based on FactSet data.
The platform exceeded expectations in its previous quarter, delivering revenue of $725.6 million — representing 69.7% year-over-year expansion — complemented by robust EBITDA performance. This success establishes elevated expectations for the upcoming report.
For the current quarter, Wall Street anticipates approximately 55% year-over-year revenue expansion. This represents a modest deceleration compared to the 61.5% growth Reddit achieved in Q1 of the previous year.
Daily active user metrics are drawing particular scrutiny. Reddit disclosed 52.5 million DAUs in the prior quarter, marking 9.4% year-over-year growth. Analysts project global DAU expansion of 16% for Q1 — notably slower than the 30.7% increase recorded in the comparable quarter last year.
This growth slowdown has sparked investor concern, especially as artificial intelligence platforms including ChatGPT, Google AI Overviews, and similar services provide alternative pathways for users to access information without engaging the platform.
Advertising Performance Under the Microscope
The advertising segment presents a brighter outlook. Analysts anticipate Q1 advertising revenue reaching $567 million, representing a 58% surge from the year-ago period.
Jefferies analyst John Colantuoni, maintaining a Buy rating with a $250 price objective, observed in mid-April that discussions with advertisers indicated “resilient digital budgets” and “particularly strong trends” at Reddit.
Reddit is marketing itself as a platform offering authentic human interaction that artificial intelligence cannot easily duplicate. This represents the core investment thesis for bulls.
D.A. Davidson analyst Wyatt Swanson reinforced this perspective on April 21, stating that Reddit “remains incredibly under-monetized relative to peers” and has established itself as a “human-first social platform.” His Buy rating includes a $200 price target.
Insights from Competitor Results
Recent earnings from comparable consumer internet companies provide useful context. Booking delivered 16.2% revenue growth in Q1, meeting analyst projections. Coursera reported 9.1% growth but experienced an 11.6% stock decline following its announcement.
Reddit maintains a history of surpassing Wall Street projections, and analysts have maintained relatively stable estimates over the past 30 days — indicating limited expectation of significant surprises.
During the past month, consumer internet stocks have averaged 16.2% gains. Reddit has outperformed with 19.5% appreciation over the identical timeframe, suggesting investors have begun incorporating optimism ahead of the earnings release.
The consensus analyst price target of $223.34 indicates approximately 50% potential upside from current trading levels around $148.40.
