Reddit has fallen 28% this year despite eight straight quarters of 60%+ revenue growth, a disconnect that Wall Street targets aim to close with price goals ranging from $215 to $300. RDDT's human-content moat, 84% international revenue growth, and $760M remaining buyback underpin 68% analyst Buy sentiment despite choppy Google traffic headwinds. SNAP dropped 36% and PINS fell 11% YTD on slowing growth, while RDDT's selloff is unique for occurring alongside accelerating fundamentals.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Reddit didn't make the cut. Grab the names FREE today. Reddit (NYSE:RDDT) currently trades at $164.50, while Wall Street's average price target sits at $215.31, an implied upside of roughly 31%.
The most bullish targets push that gap wider, toward the $300 figure carried by Needham, Argus, and Citizens. Reddit monetizes through advertising, which contributes roughly 95% of revenue. The company is compounding revenue north of 60% year over year while margins expand, and CEO Steve Huffman positions Reddit as the human counterweight to a web increasingly filled with AI-generated content.
That backdrop is why the gap matters. The fundamentals are accelerating. The core cause is a valuation reset, not a business reset.
Shares are down 28.44% year to date and 33.27% over the past year, even though Q2 2026 delivered revenue of $804.9M, up 61.1% YoY, and EPS of $1.25 against a $0.97 consensus. Two overhangs drive the pressure. Search referral traffic from Google has been, in management's word, "choppy", and Google's AI Overviews have "yet to make a similar level of positive impact" compared with legacy blue links.
Second, investors are unsure how to value Reddit's data licensing pipeline as Google and OpenAI relationships evolve. Stock-based compensation of $106.8M in Q2 has also drawn scrutiny. The selloff is Reddit-specific in magnitude.
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