Analysts Cut Reddit Price Targets to $200–$240 as Shares Plunge 36%
Baird cut Reddit’s price target to $200 from $240 while Piper Sandler and Morgan Stanley lowered theirs to $205 (from $290) and $240 (from $265), all maintaining neutral to overweight ratings after strong Q4 results and valuation multiple contraction. Over the last 10 trading days, shares have plunged 36%, wiping out about $15 billion and reducing market cap to roughly $27 billion.
1. Analysts Lower Price Targets
Following a robust quarterly earnings beat, Baird trimmed its Reddit price target to $200 (from $240) with a Neutral rating, Piper Sandler cut to $205 (from $290) maintaining Overweight, and Morgan Stanley reduced to $240 (from $265) even as they raised revenue forecasts for fiscal 2026 and 2027 by 1%. All three firms cited valuation multiple contraction as the reason for lower targets despite positive forward outlooks and strong advertiser engagement.
2. Shares Drop 36%, $15B Market Cap Wiped Out
Reddit shares have slid for 10 consecutive trading days, accumulating a 36% loss and erasing about $15 billion in value. The stock’s market capitalization now stands near $27 billion, reflecting investor concerns over stretched valuation despite continued user growth and ad revenue momentum.