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.

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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.

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