Analysts Slash Reddit Targets on Google Search Fears Despite Q2 Beat
RDDT sits 19% above its 52-week low of $119.27 on elevated volume (5.5× avg).
Summary
Reddit's Q2 beat—EPS $1.25 vs. $0.95 consensus, revenue up 61% to $805M—was overshadowed by analyst downgrades. Piper Sandler cut its target to $195 and JPMorgan to $185, both citing Google search algorithm changes and volatile referral traffic as headwinds. Shares fell after-hours despite the strong numbers. Separately, a federal judge allowed Reddit to proceed with Section 1201 anti-circumvention claims against Perplexity AI and SerpApi, alleging they bypassed access controls to scrape content. The legal win adds a potential new front for monetization or protection of its data, but near-term sentiment is driven by the search traffic concerns.
At the time of this announcement, RDDT was trading at $142.30 on NYSE in the Technology sector, with a market capitalization of approximately $27.1B. The 52-week trading range was $119.27 to $282.95. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.