Why is RDDT stock trending today?
Reddit (RDDT) is trending as investors await its Q3 earnings report after market close on October 29. The stock has fallen 9% recently [2] despite strong revenue growth guidance (47-49% YoY), with concerns centered on slowing U.S. user growth (6% vs. 28% internationally) and whether international monetization can offset the decline in higher-value U.S. users.
What happened
- 29 Oct, 06:30 UTC
Reddit reports Q3 2026 earnings after market close, with revenue guidance of $860M-$870M and adjusted EBITDA of $385M-$395M [1][2].
- Earlier
Reddit's stock dropped 9% in the week leading to earnings, underperforming the consumer internet sector's 5% average gain [1][2].
What you need to know
Q3 revenue is expected to grow ~50% YoY, down from 61% last quarter [1][2]
U.S. daily active users grew just 6% (to 53.2M) in Q2, while international users jumped 28% [2]
Analysts' average price target is $212.95 vs. current price of ~$137 [1]
It's unclear if Reddit will meet revenue targets or provide Q4 guidance above 40% growth, which could ease slowdown concerns [2].
Background
Reddit beat Q2 revenue expectations by 10% ($804.9M) and has exceeded Wall Street forecasts for 8 straight quarters [1][2].
The company faces headwinds from maturing U.S. user growth (slowing monetization) and relies on international expansion and data licensing for future revenue [2].
Legal battles with AI firms over content scraping and recent executive departures add to investor uncertainty [2].
Questions people ask
Why is Reddit's stock down despite strong growth guidance?
Investors worry about decelerating U.S. user growth (now 6% YoY) and whether lower-monetizing international users can sustain revenue momentum [2].
What numbers matter most in the earnings report?
Watch revenue vs. the $865M midpoint, U.S. DAU growth, and Q4 guidance (a guide above 40% growth may ease concerns) [2].
Does Reddit have financial cushion?
Yes, it holds $2.8B in net cash, providing flexibility despite growth challenges [2].
Where this came from
Found through Google Trends and drafted with AI from at least two cited sources. Published automatically after passing our automated checks for sources, wording and safety. It may not have been reviewed by a person yet. Report a correction.