Reddit (NYSE:RDDT) Shares Gap Up After Better-Than-Expected Earnings

Reddit Inc. (NYSE:RDDT)’s share price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $147.23, but opened at $165.51. Reddit shares last traded at $158.8990, with a volume of 3,773,848 shares traded.

The company reported $1.01 earnings per share for the quarter, beating analysts’ consensus estimates of $0.62 by $0.39. The business had revenue of $663.41 million during the quarter, compared to analyst estimates of $607.74 million. Reddit had a return on equity of 20.89% and a net margin of 24.05%.The company’s revenue was up 69.1% on a year-over-year basis. During the same quarter last year, the business posted $0.13 EPS.

Reddit News Roundup

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Q1 results beat and strong guidance — Reddit posted a sizable beat on revenue and EPS, delivered a $204M profit, and guided Q2 revenue above consensus, supporting the rally. Reddit Reports First Quarter 2026 Results
• Positive Sentiment: AI-driven ad products cited as the growth engine — Company commentary and multiple reports point to stronger returns from AI advertising tools as the key driver of higher ad sales and the bullish revenue outlook. Reddit rallies as AI‑driven ad growth fuels strong revenue outlook
• Positive Sentiment: Market reaction in premarket/after-hours trading — Reports show shares jumped substantially in premarket trading after the prints and guidance, reflecting renewed investor enthusiasm. Reddit stock jumps 12%: can AI-driven ads spark stock revival?
• Positive Sentiment: Analyst support — Needham reaffirmed a Buy and set a $300 price target, signaling bullish analyst conviction that could reinforce momentum. Benzinga
• Neutral Sentiment: Product/engagement improvement — Weekly search usage is up ~30% YoY, showing product improvements that could help ad targeting and engagement over time. People are finally using Reddit’s search
• Neutral Sentiment: Earnings call transcript and metric details available — The full transcript and metric breakdowns provide more color but contain no immediate surprises beyond management’s upbeat commentary. Reddit Q1 2026 Earnings Call Transcript
• Negative Sentiment: Mixed coverage on profitability detail — One outlet framed the quarter as an earnings “miss” offset by adjusted EBITDA and revenue strength; such mixed narratives can create short-term volatility despite the beat. Reddit stock climbs as revenue, adjusted EBITDA surge offsets earnings miss

Analyst Ratings Changes

RDDT has been the subject of a number of recent research reports. UBS Group set a $265.00 price objective on Reddit in a research note on Tuesday, January 13th. Oppenheimer reiterated an “outperform” rating on shares of Reddit in a research note on Friday. Wall Street Zen lowered Reddit from a “buy” rating to a “hold” rating in a research note on Wednesday, April 8th. Piper Sandler restated an “overweight” rating and issued a $205.00 price target (down from $290.00) on shares of Reddit in a research note on Friday, February 6th. Finally, Guggenheim lifted their price target on Reddit from $245.00 to $255.00 and gave the company a “buy” rating in a research note on Friday, February 6th. One analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Reddit has an average rating of “Moderate Buy” and an average price target of $229.86.

Insider Transactions at Reddit

In other Reddit news, COO Jennifer L. Wong sold 39,167 shares of the business’s stock in a transaction that occurred on Thursday, April 16th. The stock was sold at an average price of $161.47, for a total transaction of $6,324,295.49. Following the completion of the sale, the chief operating officer directly owned 1,088,451 shares in the company, valued at approximately $175,752,182.97. The trade was a 3.47% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Christopher Brian Slowe sold 15,500 shares of the business’s stock in a transaction that occurred on Wednesday, April 8th. The stock was sold at an average price of $150.67, for a total value of $2,335,385.00. Following the sale, the chief technology officer owned 38,413 shares of the company’s stock, valued at approximately $5,787,686.71. This trade represents a 28.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have purchased 61,000 shares of company stock valued at $8,870,815 and have sold 280,441 shares valued at $40,873,759. Corporate insiders own 34.25% of the company’s stock.

Institutional Investors Weigh In On Reddit

Several large investors have recently bought and sold shares of RDDT. Capital World Investors purchased a new stake in Reddit during the 4th quarter worth approximately $1,293,258,000. Norges Bank purchased a new stake in Reddit during the 4th quarter worth approximately $372,047,000. Vanguard Group Inc. increased its stake in Reddit by 12.9% during the 3rd quarter. Vanguard Group Inc. now owns 12,238,508 shares of the company’s stock worth $2,814,734,000 after buying an additional 1,401,293 shares in the last quarter. Invesco Ltd. increased its stake in Reddit by 419.0% during the 3rd quarter. Invesco Ltd. now owns 1,487,941 shares of the company’s stock worth $342,212,000 after buying an additional 1,201,237 shares in the last quarter. Finally, State Street Corp increased its stake in Reddit by 138.5% during the 2nd quarter. State Street Corp now owns 2,030,139 shares of the company’s stock worth $305,678,000 after buying an additional 1,178,890 shares in the last quarter.

Reddit Stock Performance

The company has a 50 day simple moving average of $144.12 and a 200 day simple moving average of $184.31. The company has a market capitalization of $30.70 billion, a PE ratio of 61.04, a price-to-earnings-growth ratio of 1.07 and a beta of 2.40.

Reddit Company Profile

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called “subreddits,” each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.