Reddit initiated with an Overweight at Wells Fargo

Wells Fargo initiated coverage of Reddit (RDDT) with an Overweight rating and $206 price target The firm says that while the 91% post-Q3 earnings share outperformance reflects optimism following a strong print and guidance, it sees 33% upside to Street 2026 EBITDA estimates on advertising monetization upside. As such, it believes the shares are likely to outperform on continued positive estimate revisions. The market has yet to fully appreciate Reddit’s near-term monetization improvement opportunity despite the recent stock performance, the analyst tells investors in a research note. Wells estimates 60% of Reddit engagement as monetizable, after excluding time spent on functions/content that disallow ad placements.