Reddit Inc. (RDDT) shares have dropped 14.7% over the past three months, while the Zacks Computer & Technology sector declined by 4.4% and the Internet – Software industry saw a 6.4% increase. During this period, competitors Pinterest and Snap both experienced stock gains of 2.8% and losses of 6.7%, respectively.
The company reported a 64% increase in advertising revenue year-over-year, reaching $762 million in Q2 2026. Daily active users rose to 130.3 million, an 18% year-over-year increase, as weekly active users reached 514.6 million, up 24%. Despite these gains, Reddit is contending with decreased search referral traffic leading to a growing competitive landscape in digital advertising.
Looking ahead, Reddit projects Q3 2026 revenues between $860 million and $870 million, indicating a year-over-year growth of 47% to 49%. The Zacks Consensus Estimate for Q3 revenues stands at $886.87 million, which reflects a year-over-year growth of 51.62%. Earnings per share estimates have also risen to $1.33, suggesting a 66.25% year-over-year growth.
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