Reddit Inc. (RDDT) has seen a share price decline of 28.2% over the past six months, contrasting sharply with a 15.2% rise in the broader Zacks Computer & Technology sector. In comparison, peers such as Pinterest (PINS) and Meta Platforms (META) have reported losses of 20.8% and 13.4% respectively, while Alphabet (GOOGL) has experienced gains of 13.4% during the same period.
For the second quarter of 2026, Reddit projects revenues between $715 million and $725 million, with a Zacks Consensus Estimate of $746.89 million, marking a 49.49% year-over-year growth. The earnings consensus stands at 99 cents per share, indicating a 120% year-over-year increase. Meanwhile, Reddit’s international revenues surged 76% year-over-year, significantly outpacing the 67% growth of U.S. revenues.
Despite the challenges, Reddit’s user engagement appears promising, with 126.8 million daily active unique users, a 17% increase year-over-year, and an average revenue per user (ARPU) of $5.23, representing a 44% year-over-year rise. The platform’s growing international presence and evolving advertising tools are seen as key drivers for its future performance.
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