Rddt Stock Faces Thursday Test on 16% User Growth
Rddt stock enters Thursday after falling 36% in 2026, even as analysts expect first-quarter revenue of $608 million and adjusted earnings of $0.57 per share. The gap between slowing user growth and still-solid ad sales will shape the first read on whether Reddit can keep its post-IPO run alive.
Reddit’s Thursday earnings test
$608 million in expected revenue is the number that matters most for this report. Analysts also expect $0.57 per share in adjusted earnings, a combination that would follow Reddit’s prior quarter, when revenue reached $725.6 million and the company beat expectations on EBITDA, or earnings before interest, taxes, depreciation, amortization.
52.5 million daily active users in the most recent quarter set the baseline for this update, after that figure rose 9.4% from a year earlier. For the March quarter, projections call for 16% global daily active user growth, faster than the 30.7% growth Reddit posted in the comparable quarter last year.
John Colantuoni on ad demand
Jefferies analyst John Colantuoni said mid-April discussions with advertisers pointed to “resilient digital budgets” and “particularly strong trends” on Reddit’s platform. That view supports the revenue forecast, which calls for 55% growth from the year-ago period and $567 million in advertising revenue, a 58% increase from a year earlier.
$250 is Colantuoni’s price target, paired with a Buy rating on RDDT. D.A. Davidson’s Wyatt Swanson was also constructive, saying on April 21 that Reddit “remains incredibly under-monetized relative to peers” and is a “human-first social platform,” while assigning a $200 price target.
March 2024 IPO gains
326% is how far Reddit shares have risen since the company’s March 2024 initial public offering at $34 per share. The stock still carries pressure from a 36% decline during 2026, and the consensus analyst price target of $223.34 implies about 50% potential upside from current trading levels around $148.40.
That setup leaves Thursday’s release as a direct test of whether revenue can keep outpacing the slowdown in user growth. If the company delivers the expected ad and earnings numbers, the market will have a cleaner way to judge whether the IPO-era rally still has room to run.
