Analysts Slash Reddit Price Targets 15% After Q4 Revenue Falls 5%
Three major firms cut Reddit’s price targets to an average of $27 and trimmed FY2026 EPS by $0.02 after Q4 revenue of $260 million missed consensus by 5% and daily active users dipped 3%. Ad revenue growth forecasts were lowered to 10% from 15%, reflecting weaker advertiser demand.
1. Analyst Price Target Cuts
Goldman Sachs, JPMorgan and Morgan Stanley lowered their price targets on Reddit by an average 15%, moving midpoints to roughly $27 per share. Each firm also trimmed FY2026 EPS estimates by $0.02 to $0.15, citing Q4 performance below expectations.
2. Q4 Financial and User Metrics
Reddit reported $260 million in Q4 revenue, 5% under analyst consensus, and daily active users fell 3% sequentially. Management noted softer ad demand in North America, while international user growth remained flat.
3. Implications for Ad Revenue Growth
Revised forecasts cut ad revenue growth to 10% for FY2026 from 15%, as advertisers pull back on digital spend. Investors will watch upcoming guidance for signs of stabilization in user engagement and monetization before revisiting valuation.