Analyst Sees Significant Upside for Reddit (NYSE:RDDT) Amidst Strong Growth

Font: Financial Modeling Prep  • Jun 23, 2026

• Analyst Naved Khan sets a $250 price target for Reddit, indicating a 46.44% potential upside.
• Reddit demonstrated strong Q1 2026 revenue growth of 69%, with advertising revenue up 74%, fueled by AI tools and a Shopify partnership.
• The company maintains a "Strong Buy" average brokerage recommendation of 1.90, reflecting broad Wall Street optimism.

Reddit (NYSE:RDDT) is a social media company that generates revenue primarily through advertising and data licensing. Analyst Naved Khan of B.Riley Financial sets a price target of $250 for Reddit. This target suggests a potential upside of 46.44% from its previous trading price of $170.72, reflecting a positive outlook on the company's future.

This optimism is supported by Reddit's rapid growth into a profitable advertising platform. In the first quarter of 2026, the company's revenue increased by 69%, with advertising revenue alone jumping 74% year-over-year. This growth is driven by new AI tools and an expanded partnership with Shopify, as highlighted by Zacks Investment Research.

The company generates strong earnings and cash flow while requiring minimal capital spending. This financial strength is partly due to a rising Average Revenue Per User (ARPU). ARPU measures the average income generated from each user, and its growth indicates Reddit is successfully monetizing its user base.

Compared to its competitor Meta Platforms, Reddit shows stronger momentum. As highlighted by Zacks Investment Research, Meta's ad revenue grew 33% in its first quarter, while it faces rising AI costs. Reddit's unique human conversation data is also seen as a strategic asset for future AI licensing deals.

This positive view is shared across Wall Street. As highlighted by Zacks Investment Research, Reddit holds an average brokerage recommendation of 1.90 on a 1-to-5 scale, where 1 is a "Strong Buy." Among 30 brokerage firms, 17 give the stock a "Strong Buy" rating and one gives it a "Buy" rating.