DEEP

The Week

Reddit fell 2.36% this week to close at $156.14, underperforming the S&P 500 by about 0.41 percentage points as the benchmark lost 1.95%. It was a choppy five sessions: Monday (12 October) opened lower and touched $151.42 before finishing at $159.93; Tuesday (13 October) rallied intraday to $164.18, then sold off to $155.29; Wednesday (14 October) slipped to $148.60; Thursday (15 October) printed the week’s low of $145.51 before recovering to $159.36; Friday (16 October) opened higher and closed at $156.14. The weekly range was 12.08%, or roughly $19.43 top to bottom, on active turnover.

Key Events

The two most direct company developments were the earnings date confirmation and a CEO share sale. Reddit has scheduled its fiscal third quarter 2026 results for after the market close on 29 October, with the market expecting EPS of $1.3242 and revenue of $875 million. On 16 October, CEO and President Steve Huffman disclosed the sale of about $2.74 million in common shares; the same day Jim Cramer called Reddit inexpensive relative to SiTime and said he would buy it. Earlier in the week, Reddit and Perplexity AI clashed over a law firm’s role in a data-scraping case, keeping the legal debate around AI data access alive. At the sector level, AI data licensing and nuclear policy expectations drove divergence across tech and energy, and Reddit was mentioned in some repricing discussions, but there was no new product launch or major partnership from the company this week.

Analyst Ratings

Thirty-four brokers cover Reddit: 16 rate it buy, 6 rate it overweight, 11 rate it hold, and 1 rates it sell, with no underweight or no-opinion ratings. That is 23 buy or overweight ratings and 1 sell. The consensus rating is buy, with a consensus target of $213.71, about 36.87% above the latest price of $156.14. Targets range from $130 to $300, pointing to wide disagreement. Within the internet content and information industry, Reddit ranks 6th out of 61 names.

The Week Ahead

There are no company-specific events before the third quarter earnings release on Thursday, 29 October, after the close, so attention shifts to macro data and sector sentiment. On Monday, 19 October, the US NAHB housing market index is due (prior 32, consensus 32). On Tuesday, 20 October, housing starts and building permits are released; housing starts are expected at 1.305 million versus 1.275 million prior, and building permits at 1.395 million versus 1.403 million prior. On Wednesday, 21 October, the EIA weekly crude inventories and Cushing inventories are scheduled. How these figures shape rate expectations will matter for the near-term mood around growth names like Reddit.

In Short

Reddit’s week did not hinge on a single directional catalyst, and the tape was more about choppiness and divergence. The analyst picture leans constructive, with a consensus buy rating and a target roughly a third above spot, though the wide target range shows big disagreement on the long-term path. Latest-session money flows were mixed across large, medium, and small orders rather than aligning in one direction, while the CEO share sale and the Perplexity data-scraping dispute added background noise. At about 34.5x earnings and 9.1x book, the valuation sits at the higher end for growth internet names but has not undergone a trend-style repricing. The key variable now is whether the 29 October earnings print can support revenue and profit expectations, alongside any macro-driven shift in rate sentiment.

This article is generated by LongbridgeAI from market data, for information only and not investment advice.