
Reddit Inc (RDDT) Stock Forecast & Price Target
Reddit Inc (RDDT) Analyst Ratings
Bulls say
Reddit's performance in 4Q24 demonstrated significant growth, with daily active users (DAUs) reaching 101.7 million, reflecting a 39% year-over-year increase, and international DAUs growing by an impressive 46%. The company reported a remarkable 71% revenue growth to $428 million, with advertising revenue surging by 60% year-over-year and contributing to a high gross margin of 92.6%, which expanded by 410 basis points. Additionally, the increase in logged-in users by 27% and expectations for a heightened hiring pace in FY25 indicate a strong operational outlook and an expanding user engagement strategy.
Bears say
The analysis of Reddit's stock highlights a negative outlook primarily due to several concerning financial metrics and market conditions. Despite a year-over-year increase in daily active users (DAUs), the recent quarterly decline in DAUs, coupled with the reliance on Google for advertising revenue, raises significant concerns about growth sustainability and revenue stability. Furthermore, risks related to a weak global advertising market, falling average revenue per user (ARPU), and potential regulatory challenges pose further threats to Reddit's financial health and future profitability.
This aggregate rating is based on analysts' research of Reddit Inc and is not a guaranteed prediction by Public.com or investment advice.
Reddit Inc (RDDT) Analyst Forecast & Price Prediction
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