Phillip Securities Downgrades Reddit (RDDT), Lowers Price Target

Reddit, Inc. (NYSE:RDDT) is one of the 10 Best Aggressive Growth Stocks to Buy According to Wall Street Analysts. On May 6, Phillip Securities downgraded its rating on Reddit, Inc. (NYSE:RDDT) from Buy to Accumulate and reduced its price target from $240 to $200.

The company reported Q1 2026 results that were below the firm’s estimates. Reddit, Inc. (NYSE:RDDT) reported revenue of $663 million, up 69% year-over-year. Net income increased 680% to $204 million, while the company’s gross margin improved to 91.5% from 90.5% in the same period last year. Reddit, Inc.’s (NYSE:RDDT) growth was mainly driven by the advertising segment, which benefited from gains in both impressions and pricing.

Phillip Securities Downgrades Reddit (RDDT), Lowers Price Target

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However, Phillip Securities lowered its fiscal 2026 revenue forecast by about 10% and cut its net income estimate by 2%. The research firm noted that Reddit, Inc. (NYSE:RDDT) is moving toward more normal advertising growth after initial gains seen post-IPO.

The firm added that momentum could continue to be driven by the expansion of the Reddit Max AI ad suite, steady growth in average revenue per user, and high-margin data-licensing deals.

Reddit, Inc. (NYSE:RDDT) operates as a social media platform that allows registered users to submit content to the site, which is one of the most visited websites in the world.

While we acknowledge the risk and potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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