Oppenheimer & Co analysts late Thursday weighed in on Reddit (NYSE:RDDT)’s third quarter earnings and revenue results, which exceeded Wall Street expectations.
Reddit’s Q3 sales rose 68% year-over-year, while its earnings per share of $0.80 surpassed the analyst consensus estimate of $0.51.
The company also said it expects fourth-quarter revenue of between $655 million to $665 million, better than the $638 million consensus forecast.
In a note to clients, the analysts stated that Reddit’s revenue continues to impress with product improvements expected in the first half of 2026.
“We believe Reddit is well positioned to continue gaining share of the ~$250 billion digital ad market, excluding Alphabet and Meta Platforms,” they wrote.
The analysts also noted that the company’s early monetization efforts have been successful, with pricing holding steady as impressions increased significantly in 2024.
They believe Reddit is “one of the best-written and most authentic sources of human interaction on the internet.”
Oppenheimer reiterated their ‘Outperform’ rating and $300 per share target price on Reddit stock.
Shares of Reddit climbed nearly 13% to $219.10 in early trading on Friday.