• Evercore ISI has initiated coverage on Reddit (NYSE:RDDT) with an "Outperform" rating, highlighting a positive outlook for the stock.
• Reddit's third-quarter revenues saw a 68% year-over-year growth, driven by a 74% increase in advertising revenue.
• The company's daily and weekly active users have both grown by approximately 20% year-over-year, indicating strong user engagement.

On January 12, 2026, Evercore ISI initiated coverage on Reddit (NYSE:RDDT) with an "Outperform" rating, signaling a positive outlook for the stock. At the time, RDDT was priced at $244.02. Reddit, a prominent social media platform, has been making waves in the digital advertising space, competing with giants like Facebook and Google.

Reddit's third-quarter revenues reached $585 million, marking a 68% year-over-year growth. This surge is primarily due to a 74% increase in advertising revenue, which totaled $549 million. The company's innovative product lineup and AI-driven advertising tools have significantly boosted user engagement and revenue.

In the third quarter of 2025, Reddit's daily active users (DAUs) rose to 116 million, while weekly active users (WAUs) increased to 444 million, both showing around 20% year-over-year growth. This growth in user base is a testament to Reddit's strategic focus on enhancing user engagement, which is crucial in the competitive digital advertising landscape.

Looking forward, Reddit expects its fourth-quarter revenues to be between $655 million and $665 million, indicating sustained momentum in revenue growth. Despite the challenges in the digital advertising sector, Reddit's strong portfolio and focus on user engagement continue to drive its financial performance.

Currently, RDDT is trading at $244.02, reflecting a slight decrease of 0.22% or $0.54. The stock has fluctuated between $240.61 and $251.87 today. Over the past year, RDDT has seen a high of $282.95 and a low of $79.75, with a market capitalization of approximately $46.24 billion. Today's trading volume stands at 2,342,374 shares.