What is KeyCorp's Forecast for Reddit Q2 Earnings?

Key Points

• KeyCorp forecast Q2 2026 EPS of $0.91 for Reddit and maintained a “Strong Buy” rating. It projected EPS of $1.23 in Q3, $4.90 for FY2026, and $8.73 for FY2028.
• Reddit subsequently reported Q2 EPS of $1.25 on revenue of approximately $805 million, exceeding expectations of $0.95 EPS and $731 million in revenue; revenue rose 61% year over year.
• Despite strong results and above-consensus Q3 revenue guidance, investor concerns include volatile search referrals, slower U.S. daily-user growth and a lack of new AI licensing deals. Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $220.90.

Reddit Inc. (NYSE:RDDT - Free Report) - Equities researchers at KeyCorp issued their Q2 2026 earnings per share (EPS) estimates for Reddit in a report issued on Tuesday, July 28th. KeyCorp analyst J. Patterson forecasts that the company will post earnings per share of $0.91 for the quarter. KeyCorp currently has a "Strong-Buy" rating on the stock. The consensus estimate for Reddit's current full-year earnings is $4.85 per share. KeyCorp also issued estimates for Reddit's Q3 2026 earnings at $1.23 EPS, Q4 2026 earnings at $1.74 EPS, FY2026 earnings at $4.90 EPS, FY2027 earnings at $6.92 EPS and FY2028 earnings at $8.73 EPS.

RDDT has been the topic of several other research reports. Jefferies Financial Group set a $250.00 target price on shares of Reddit in a report on Friday, July 10th. Roth Capital reiterated a "neutral" rating and set a $145.00 target price on shares of Reddit in a research note on Monday. B. Riley Financial increased their price target on Reddit from $250.00 to $270.00 and gave the company a "buy" rating in a report on Friday. Zacks Research upgraded Reddit from a "hold" rating to a "strong-buy" rating in a research note on Monday, July 27th. Finally, UBS Group reaffirmed a "buy" rating on shares of Reddit in a report on Friday. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and eleven have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average target price of $220.90.

Reddit Price Performance

Shares of RDDT stock opened at $140.67 on Monday. The company has a 50 day moving average price of $176.72 and a 200-day moving average price of $164.36. Reddit has a 52 week low of $119.27 and a 52 week high of $282.95. The firm has a market capitalization of $27.08 billion, a PE ratio of 32.71 and a beta of 2.04.

Reddit (NYSE:RDDT - Get Free Report) last issued its earnings results on Thursday, July 30th. The company reported $1.25 earnings per share for the quarter, topping analysts' consensus estimates of $0.95 by $0.30. The business had revenue of $804.91 million during the quarter, compared to analyst estimates of $731.00 million. Reddit had a return on equity of 29.97% and a net margin of 31.35%.Reddit's revenue was up 61.0% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.45 EPS.

Institutional Trading of Reddit

Hedge funds and other institutional investors have recently modified their holdings of the company. Ahara Advisors LLC boosted its holdings in Reddit by 42.8% in the 2nd quarter. Ahara Advisors LLC now owns 10,759 shares of the company's stock worth $1,868,000 after buying an additional 3,224 shares during the period. Udine Wealth Management Inc. bought a new stake in Reddit during the second quarter valued at about $2,901,000. Bogart Wealth LLC raised its holdings in Reddit by 8,400.0% during the second quarter. Bogart Wealth LLC now owns 595 shares of the company's stock valued at $103,000 after acquiring an additional 588 shares during the period. a16z Perennial Management L.P. purchased a new position in shares of Reddit in the second quarter valued at about $430,000. Finally, Sidoxia Capital Management LLC purchased a new position in shares of Reddit in the second quarter valued at about $713,000.

Insider Buying and Selling

In other news, CAO Michelle Marie Reynolds sold 808 shares of Reddit stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $200.00, for a total transaction of $161,600.00. Following the transaction, the chief accounting officer directly owned 15,060 shares of the company's stock, valued at $3,012,000. The trade was a 5.09% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, COO Jennifer L. Wong sold 39,167 shares of Reddit stock in a transaction that occurred on Monday, May 18th. The shares were sold at an average price of $158.52, for a total transaction of $6,208,752.84. Following the transaction, the chief operating officer directly owned 1,088,451 shares in the company, valued at $172,541,252.52. This represents a 3.47% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 169,141 shares of company stock valued at $28,680,845. 28.48% of the stock is owned by company insiders.

Reddit News Summary

Here are the key news stories impacting Reddit this week:

• Positive Sentiment: Reddit reported second-quarter revenue of approximately $805 million, up 61% year over year, while earnings of $1.25 per share exceeded analysts’ estimates. Advertising demand, higher pricing and user growth supported stronger monetization. Reddit crushes revenue and earnings estimates, issues strong guidance
• Positive Sentiment: Management forecast third-quarter revenue of $860 million to $870 million, above Wall Street’s approximately $830 million expectation. AI-powered advertising tools, product upgrades and continued ad growth are expected to support momentum. Reddit expects revenue above estimates as AI tools attract advertisers
• Positive Sentiment: Analyst sentiment remains mixed but includes bullish views: Truist raised its price target to $275 and maintained a buy rating, while Wedbush kept an outperform rating with a $221 target. KeyCorp also upgraded Reddit to “strong buy.” Reddit analyst actions
• Neutral Sentiment: Reddit is testing a “video Reddit” experience that could let users watch videos and listen to posts in the background, potentially increasing engagement and creating new advertising opportunities over time. Reddit is testing a new way to watch and listen to its viral posts
• Negative Sentiment: The primary selloff trigger was management’s warning that search referrals have become “choppy” or volatile. Investors fear Google’s AI-generated search summaries and other AI search tools could reduce traffic to Reddit, weakening future user growth, engagement and advertising monetization. Reddit Stock Plunges on Choppy Search Referrals Warning
• Negative Sentiment: Investors were also disappointed by slower U.S. daily-user growth and the lack of announced new AI licensing deals, raising questions about Reddit’s longer-term traffic outlook. JPMorgan and Cantor Fitzgerald responded by lowering their price targets to $185 and $170, respectively, while assigning neutral ratings. Reddit earnings: why are investors concerned despite solid headline numbers

About Reddit

Reddit is an online social news aggregation, discussion and content-sharing platform organized around user-created communities called "subreddits," each focused on a particular topic or interest. Registered users submit links, text posts, images and video, and community members vote and comment to surface popular content. The site is accessed via its web platform and mobile apps for iOS and Android, and it supports live events such as Ask Me Anything (AMA) sessions and community-driven discussions.

Founded in 2005 by Steve Huffman and Alexis Ohanian, Reddit is headquartered in San Francisco and serves a global audience with particularly large user bases in the United States and other English-speaking markets.

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