Reddit Inc. Upgraded to Zacks Rank #1: A Strong Buy for Your Portfolio

Reddit Inc. (RDDT) was upgraded to the Zacks Rank #1 list on August 7, 2025. Analysts revised their earnings estimate upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $1.81 per share. The company boasts an average earnings surprise of 261.9%. Analysts expect earnings to grow 154.4% and revenue to rise 57.3% for the current fiscal year. RDDT has gained 45.2% over the past four weeks, outperforming the S&P 500's 2.7% gain.

Title: Reddit Inc. (RDDT) Upgraded to Zacks Rank #1: Analysts Bullish on Earnings and Revenue Growth

Reddit Inc. (RDDT), the social news aggregation and discussion website, has received a significant boost as it was recently upgraded to the Zacks Rank #1 list on August 7, 2025. This upgrade is a result of analysts revising their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing to $1.81 per share. The company has shown an impressive average earnings surprise of 261.9% and is expected to post earnings growth of 154.4% and revenue growth of 57.3% for the current fiscal year. Over the past four weeks, RDDT has gained 45.2%, outperforming the S&P 500's 2.7% gain.

Analysts' optimism is driven by several key factors. The Zacks Rank #1 rating indicates a strong buy signal, suggesting that the stock is expected to outperform the broader market in the near term. This rating is based on a proprietary stock rating tool that effectively harnesses the power of earnings estimate revisions [1].

The company's earnings estimate revisions have been substantial. Over the last 30 days, the Zacks Consensus Estimate for the current fiscal year has changed by +49.6%, reflecting a robust increase in expected earnings. Similarly, the estimate for the next fiscal year has changed by +39.8%, further indicating analyst confidence in the company's future performance [1].

Reddit Inc. has also shown strong revenue growth. The consensus sales estimate for the current quarter points to a year-over-year change of +57.8%, while estimates for the current and next fiscal years indicate changes of +57.2% and +33.1%, respectively. This revenue growth is crucial as it underpins the company's earnings growth [1].

Institutional investors have also shown interest in Reddit Inc. RWA Wealth Partners LLC recently acquired a new stake in the company, purchasing 3,890 shares valued at approximately $408,000 during the first quarter. This acquisition is part of a broader trend of increased institutional investment in the company [2].

Moreover, insiders have been active in their stock transactions. CTO Christopher Brian Slowe sold 16,000 shares of the company's stock in a transaction on July 22nd, while COO Jennifer L. Wong sold 32,379 shares on August 18th. These transactions, totaling 363,364 shares worth $53,557,742, represent a significant portion of the company's stock, with insiders owning 34.25% of the company's stock [2].

Analysts have also set new price targets for Reddit Inc. Needham & Company LLC lifted their target price on shares of Reddit from $165.00 to $215.00 and gave the stock a "buy" rating, reflecting their optimism about the company's future prospects [2].

In conclusion, Reddit Inc. has received a strong bullish signal from analysts, with its Zacks Rank #1 upgrade indicating a potential for significant outperformance. The company's robust earnings and revenue growth estimates, along with increased institutional investment and insider activity, provide a compelling case for investors to consider adding Reddit Inc. to their portfolios.

References
[1] https://www.nasdaq.com/articles/reddit-inc-rddt-attracting-investor-attention-here-what-you-should-know
[2] https://www.marketbeat.com/instant-alerts/filing-rwa-wealth-partners-llc-takes-408000-position-in-reddit-inc-rddt-2025-08-21/