Dj Reddit Price Target Raised To $215.00/Share From $210.00 By Roth Capital

Investing.com -- Reddit (NYSE:RDDT) stock fell 9% Tuesday after Cleveland Research analyst Ross Walthall issued cautious comments about the social media platform’s growth prospects, adding to negative sentiment around the company.

Walthall’s report highlighted concerns about moderating growth forecasts for 2026, citing a slowdown in new advertisers and less conviction about scaling up spending from existing clients. Large U.S. partners appear more likely to reduce forecasts, though European and smaller agencies maintain steadier outlooks.

The analyst also warned of increasing competitive pressures facing Reddit. "Our research was less optimistic on the pace of growth into 2026 – we saw reduced forecasts from large US agencies, somewhat offset by steady outlooks for European & smaller US partners," Walthall noted.

While Reddit’s return on investment sentiment remains positive, with 59% of partners beating ROI targets, this represents a decline from 76% in the previous quarter. The report suggests broader adoption of Conversion API (CAPI) is needed to unlock more direct response advertising spending.

Cleveland Research now projects Reddit’s 2026 revenue growth at 36% YoY ($2.9 billion), below the consensus estimate of 39.1% ($3.0 billion). The firm maintained slightly more optimistic projections for the current quarter, modeling fourth-quarter revenue growth of 56.4% YoY compared to consensus expectations of 55.7%.

The report also highlighted competitive threats, noting advertisers expect TikTok and Snap to compete more aggressively for 2026 budget allocations, with additional potential risk from ChatGPT test budgets gaining share.

Investing.com -- The hierarchy of social platform influence within artificial intelligence may be undergoing a significant shift as video content gains traction. According to Adweek, citing new data from four distinct sources, YouTube has officially eclipsed Reddit Inc (NYSE:RDDT) as the primary social citation source for large language models.

This transition marks a notable reversal in how machines digest and reference human-generated information across the digital landscape. Historically, Reddit dominated this space due to its text-heavy format, but Adweek reports that YouTube has overtaken Reddit as the most frequently cited social platform in AI-generated responses.

Technical barriers that previously hindered video platforms are being dismantled by more sophisticated processing capabilities. While LLMs once struggled to parse visual media, Adweek notes that transcripts, explainers, and other information associated with videos on YouTube have allowed the video platform to flourish as a source that machines can easily read.

Recent performance metrics highlight the widening gap between the two platforms in terms of AI visibility. Data from Bluefish reveals that YouTube appeared as a cited source in 16% of LLM answers over the past six months, compared with 10% for Reddit.

This trend forces a strategic pivot for brands and marketers who have traditionally prioritized forum-based SEO. Organizations could now reconsider their content production cycles to ensure their expertise is captured within the searchable architecture of the world’s largest video site.

Reddit stock has kept steady amid the news, gaining 0.4% in afternoon trade Monday.