
Reddit Inc (RDDT) Stock Forecast & Price Target
Reddit Inc (RDDT) Analyst Ratings
Bulls say
Reddit reported impressive financial performance in the fourth quarter of 2024, achieving a 71% year-over-year revenue growth to reach $428 million, driven largely by a 60% surge in advertising revenues. Daily Active Users (DAUs) rose by 39% year-over-year to 101.7 million, with significant growth in international DAUs at 46%, indicating a strong and expanding user base. The company's gross margin improved to 92.6%, alongside a notable increase in average revenue per user (ARPU) of 23%, illustrating both operational efficiency and effective monetization strategies.
Bears say
The financial outlook for Reddit appears negative due to several critical concerns, including a slowdown in user growth and a decline in Average Revenue Per User (ARPU), which may hinder future revenue generation. Additionally, reliance on Google for advertising revenue and potential regulatory restrictions related to data licensing further exacerbate uncertainties surrounding the company's financial stability. The company's recent report of a minor decrease in daily active users and negative repercussions from algorithm changes further highlight vulnerabilities in its business model.
This aggregate rating is based on analysts' research of Reddit Inc and is not a guaranteed prediction by Public.com or investment advice.
Reddit Inc (RDDT) Analyst Forecast & Price Prediction
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