What Analysts Think of Reddit Stock Ahead of Earnings | Global News Avenue

reddit(Red) Plans to report fourth-quarter revenue after the market ends on Wednesday, with analysts expecting revenue and user revenue to continue to grow.

this Social Media The company expects to report revenue of $408.92 million, up 64% Year-on-yearrevenue was $47.6 million, higher than Reddit’s $18.53 million in the same period last year. The analyst project has 132.4 million daily active users, up from 731 million a year ago.

Among the 11 analysts who followed Reddit and were tracked by visible Alpha, Reddit stock had a Buy or equivalent rating, while 3 “Hold” ratings. However, their average Price target The price of about $206 will drop 9% from the stock closing price ($224.93) after Monday’s record high. The stock has climbed nearly 40% since the beginning of the year, quickly breaking out to most targets set in January.

Deutsche Bank raises Reddit price target

Deutsche Bank analysts raised their target to $235 from $195 on Monday, indicating a recent increase in daily active users and advertising revenue. reddit answer, a AI Analysts say tools that generate summary of posts and comments can also drive advertising revenue by “capturing issues with search budgets through promoted links.” ”

Morgan Stanley said in December that Reddit may have “Multiple levers 2025, including partnerships with Alphabet’s Google (includingGOOGL) Leads search to Reddit links. A larger user base spends more time on the platform, which will also make Reddit more attractive to advertisers, which may make Reddit’s ad pricing closer to Google and Meta platforms (such as Google and Meta platforms) (Yuan), analysts wrote.

Reddit’s stock has barely changed, slightly lower on Monday after the historic Friday shutdown. The stock has soared nearly seven times from its stock IPO price is $34 March 2024.