Reddit Inc (NYSE:RDDT) stock is down 24.8% to trade at $97.51, one of the worst performers on Wall Street today. The social media company reported a top-line beat for the third quarter, but slower-than-expected daily active user growth and a weaker-than-estimated fourth quarter guidance are weighing.
Oppenheimer downgraded Reddit to a "perform" rating, while Keybanc reduced its rating to "sector weight" from "overweight." The rest of the brokerage bunch responded with price-target cuts, the worst coming from Bernstein to $120.
The round of downgrades was overdue; 21 of the 33 brokerages in coverage maintain "buy" or better ratings, with only one "sell" on the books. Plus, the consensus 12-month price target of $180.53 is a 39.3% discount to its current perch.
Reddit stock is now mired in an eight-day losing streak. Today's selloff is poised to be its worst single-session decline ever, and takes the shares below $100 for the first time since May 2025. Year to date, RDDT is down 63%, with a 14-Day Relative Strength Index (RSI) now at 18.9, deep in "oversold" territory.
