Reddit will report results this Thursday after the bell, and rddt stock is coming into the print with momentum. The shares are up 19.5% over the last month, while the average analyst price target sits at $223.34 against a current share price of $148.40.
Last quarter gave investors plenty to build on. Reddit reported revenue of $725.6 million, up 69.7% year on year, and daily active users rose 9.4% to 52.5 million. The company also beat analysts' revenue and EBITDA estimates, a pattern that has helped shape its reputation on Wall Street.
That backdrop matters because the market is leaning hard into another strong update. Analysts expect revenue to rise 55.4% from a year earlier this quarter, slowing from the 61.5% growth posted in the same quarter last year but still marking a sharp expansion for a consumer internet company. Over the last 30 days, the majority of analysts covering Reddit have reconfirmed their estimates, suggesting little shift in the near-term thesis before Thursday's release.
The company is being measured not just against its own history but against a broader peer set. Booking delivered 16.2% year-on-year revenue growth and matched analysts' expectations, while Coursera reported revenue up 9.1% and in line with consensus. Coursera still traded down 11.6% after its results, a reminder that even steady numbers can disappoint when valuations are stretched or expectations have already moved.
For Reddit, the setup is more forgiving. The stock has already climbed 19.5% over the last month, and the company has a history of exceeding Wall Street's expectations. That can cut both ways. A beat may extend the rally, but an in-line quarter could leave investors asking whether the shares have already priced in too much of the good news.
The real test on Thursday is whether Reddit can keep turning user growth into revenue at a pace that justifies the run-up. With the stock still below the average analyst target and the company still growing quickly, the next report will say less about whether Reddit can grow and more about how much growth the market is willing to pay for.
