Reddit Beats Expectations with Strong Q4, Announces $1B Buyback
Reddit reports 70% revenue growth in Q4 2025, beating Wall Street estimates with $726M in sales. Company announces first-ever $1B share repurchase program.
Reddit reports 70% revenue growth in Q4 2025, beating Wall Street estimates with $726M in sales. Company announces first-ever $1B share repurchase program.
Reddit shares fell 8% after analysts warned about slower growth, fewer new advertisers, and rising competition from TikTok, Snap, and ChatGPT.
Evercore ISI initiates coverage on Reddit with an Outperform rating and $320 price target, citing strong growth, improving monetization, and rising ad potential.
Reddit projects Q4 sales of $655-665M, beating estimates as AI-powered ads and data licensing deals drive growth. Daily users hit 116M, up 19% year-over-year.
"Reddit stock is stressed." Daily users are declining, and ChatGPT cites Reddit content much less, dropping from 29.2% to 5.3%, according to RBC Capital.
Reddit is seeking new AI deals with Google & OpenAI for "dynamic pricing," wanting more value for its valuable, user-generated data used to train AI. They hope to convert Google traffic into active users and are already set to earn $203M from existing deals.