Here’s what Wall Street is saying about Reddit ahead of earnings

Reddit (RDDT) is scheduled to report results of its fiscal third quarter after the market close on October 30, with a conference call scheduled for 5:00 pm ET. What to watch for:

GUIDANCE: In July, Reddit forecast Q3 revenue of $535M-$545M, with adjusted EBITDA of $185M-$195M. Analysts currently expect Reddit to report quarterly revenue of $549.53M. 

Roth Capital expects the company to report upside to Street’s Q3 revenue and EBITDA, and likely provide Q4 guidance above consensus expectations, though the stock reaction could be predicated on how many logged in and logged out users Reddit added in North America, the analyst tells investors in a research note.

UPSIDE 90-DAY CATALYST WATCH: Citi raised the firm’s price target on Reddit to $250 from $220 and keeps a Buy rating on the shares. Citi also opened an “upside 90-day catalyst watch” on Reddit ahead of the Q3 report on October 30. The firm believes the company’s app and web redesign could drive user growth. In addition Citi’s channel checks show continued monetization momentum for Reddit, the analyst tells investors in a research note.

NEAR-TERM CATALYSTS: Truist sees several near- to mid-term catalysts, including strong Q3 results and Q4 guidance; a unified search and answers product that is coming soon; international expansion; lower funnel ad products for shopping campaigns; automation and B2B tools for advertisers; direct partnerships with publishers; and higher traffic from data licensing partnerships. Q3 results are likely to come in at the higher-end of expectations, the analyst added.

Goldman Sachs said the firm’s checks are pointing to continued momentum for Reddit building scale in both core advertising revenues and data licensing revenues into the second half of 2025 and beyond. 

DAU DATA WEIGHING: RBC Capital said recent SimilarWeb data showing declining Reddit DAUs on a trailing 30 day average has been weighing on the stock, along with other third-party data flagging that Reddit’s citation share on ChatGPT has gone down significantly recently. The latter is consistent with a note the firm previously published, where it had noted a third-party study posted online by an agency showed that Reddit’s citation share on ChatGPT had dropped from the 29.2% range to 5.3% just since September 10, according to the analyst. 

Wells Fargo said divergence between users and advertising revenue expected to continue near-term. Wells is reducing logged-in global DAUq to 49.6M with U.S. logged-in DAUq down again and said it remains cautious on softening engagement trends.

SENTIMENT: Check out recent Media Buzz Sentiment for Reddit as measured by TipRanks.