Reddit Stock Inches Higher on Thursday: Here’s Why It Matters

Reddit shares ticked upward Thursday as traders shrugged off broader market jitters—proving once again that meme stocks dance to their own beat.

The platform's unique position at the intersection of social buzz and retail trading continues to draw both speculators and believers, even as traditional analysts scratch their heads.

While Wall Street frets over P/E ratios, Reddit's community-driven momentum offers a masterclass in modern market sentiment—whether you call it insight or organized chaos.

Love it or hate it, you can’t ignore it. And if you’re still betting against internet-fueled rallies in 2025, maybe it’s time to update your playbook—or your broker.

Untapped potential

That Reddit-tracking company was, whose analysts reiterated their buy recommendation on the stock while slightly increasing their price target to $320 per share (formerly it was $300).

Image source: Getty Images.

Reddit is lumped in with the social media stocks grouping, but within this small cabal, it's unique. It doesn't focus on updating acquaintances like' Facebook or photo-sharing like the same company's Instagram. Instead, it offers users the chance to discuss, debate, and explain any topic they're curious about.

According to reports, the Jefferies team is particularly encouraged by what they consider to be Reddit's potential to boost revenue significantly. In their modeling, they believe that the specialized tech company could post full-year 2027 revenue topping the current consensus analyst estimate by a rich 35%.

The analysts also pointed out that the company's U.S. average revenue per user (ARPU; a crucial metric in the social media industry) is well below that of certain peers, offering significant upside potential.

Second-quarter surges

To an extent, Reddit is still basking in the glow of its impressive second quarter, the figures for which were published at the end of July. The company managed to boost its revenue by a robust 78% year-over-year (to $500 million), and flip to a net profit that was well in the black, at $89 million. Both headline figures, by the way, trounced the average analyst estimates.