Reddit (RDDT) Q3 Earnings: Options Traders Anticipate 13.95% Market Shift
Reddit (RDDT) is set to disclose its third-quarter earnings on Thursday, October 30. Anticipation is growing on Wall Street, with options traders expecting a market shift of 13.95%. This projection exceeds the platform’s historical average post-earnings fluctuation of 12.49%.
Market Reactions Ahead of Earnings
Investors are particularly focused on several aspects during Reddit’s upcoming earnings call. Key attention will be given to the company’s strategies to thrive in a competitive advertising landscape, alongside its advancements in AI-driven features.
What to Monitor in Q3 Earnings
- Ad revenue growth and user engagement trends.
- Expansion strategies for attracting and retaining communities.
- Implementation of AI for content moderation and personalization.
- Management’s outlook for Q4 and Fiscal 2026 amid economic uncertainties.
Analyst Predictions for Reddit’s Performance
Analysts forecast that Reddit will report earnings of $0.53 per share, significantly up from $0.16 in the previous year. Additionally, revenue expectations stand at $549.12 million, an increase from $348.35 million year-over-year.
Price Target Adjustments
Citi analyst Ronald Josey has recently increased Reddit’s stock price target to $250 from $220, maintaining a Buy rating. He included RDDT in his “90-day catalyst watch,” anticipating that the Q3 results will generate positive momentum.
Is Reddit Stock a Worthwhile Investment?
Currently, Reddit (RDDT) is receiving a Moderate Buy consensus rating from Wall Street, based on 16 Buy and eight Hold ratings. The average price target for the stock is $237.87, suggesting an upside potential of 18.25% from its current price.
As the reporting date approaches, investors and traders are keenly watching some pivotal factors that could influence Reddit’s trajectory in the market.
