SAN FRANCISCO, Feb. 13, 2026 (GLOBE NEWSWIRE) -- Meltwater, a global leader in media, social, and consumer intelligence, today announced it has joined Reddit’s Official Data Partner program, a selective designation recognizing industry-leading platforms that help businesses do more with Reddit’s publicly available content. Partners must meet Reddit’s rigorous standards for functionality, data quality, and compliance. This partnership continues Meltwater’s access to Reddit's enterprise data APIs, allowing cu ...

Core Insights - Reddit's stock has declined over 35% year to date despite strong revenue and profitability growth, with a notable fourth-quarter earnings report that did not translate into stock price gains [1] Revenue Growth - Reddit's revenue surged 70% year over year in Q4, reaching $726 million, exceeding analyst expectations of $665 million [2] - Advertising revenue increased by 75% to $690 million, while other revenue rose by 8% to $36 million, driven by higher impressions and pricing [3] User Engagement - Daily active users grew by 19% to 121.4 million, and weekly users increased by 24% to 471.6 million, surpassing analyst projections of 120 million daily active users [4] - Average revenue per user (ARPU) rose by 42% to $5.98 [4] Profitability - Adjusted EBITDA more than doubled from $154 million a year ago to $327 million [5] - Earnings per share (EPS) increased from $0.36 to $1.24, significantly exceeding the consensus estimate of $0.94 [5] Future Projections - For Q1, the company projects revenue between $595 million and $605 million, indicating a growth of 52% to 54% [6] - Adjusted EBITDA is forecasted to be between $210 million and $220 million, up from $115.3 million a year ago [6] - A $1 billion stock buyback program has been announced [6] Strategic Initiatives - The company is beginning to leverage AI tools to enhance user experience and improve search features, which may lead to increased ad opportunities [8] - The launch of Reddit Max campaigns aims to boost ad prices by improving conversions and lowering cost per action [9]

Core Insights - Reddit (RDDT) shares have declined 46.2% in the past month, significantly underperforming the broader Zacks Computer & Technology sector's 2.1% decline and the Zacks Internet - Software industry's 5.3% drop [1][10] Company Performance - Reddit's shares have underperformed compared to peers like Snap (SNAP), Meta Platforms (META), and Pinterest (PINS), with Snap and Pinterest shares down 37.5% and 30.8% respectively, while Meta's shares increased by 6% [2] - The company reported a 75% year-over-year increase in advertising revenues, reaching $690 million in the fourth quarter of 2025, driven by strong user engagement and improvements in Average Revenue Per User (ARPU), which rose 42% year-over-year to $5.98 [6][8] - Daily active users (DAUs) increased by 19% year-over-year to 121 million, and weekly active users (WAUs) grew by 24% year-over-year to 471 million [7] Competitive Landscape - Reddit faces stiff competition from Snap, Meta, and Pinterest, with Snap experiencing a 28% year-over-year increase in total active advertisers due to improved advertising demand [14] - Meta's advertising revenues grew by 24.3% year-over-year to $58.14 billion, accounting for 97.1% of its total revenues in the fourth quarter of 2025 [15] - Pinterest is expanding its advertising capabilities through acquisitions, such as its agreement to acquire tvScientific, enhancing its advertising business on connected TV platforms [16] Valuation and Future Outlook - Reddit's stock is currently trading at a premium Price/Sales ratio of 8.33, compared to the broader sector's 6.54, indicating potential overvaluation [17] - For the first quarter of 2026, Reddit expects revenues between $595 million and $605 million, with a Zacks Consensus Estimate of $614.09 million, reflecting a year-over-year growth of 56.51% [12] - Earnings estimates for the first quarter are pegged at 60 cents per share, indicating a significant year-over-year growth of 361.54% [13]

Core Viewpoint - Reddit Inc. (NYSE:RDDT) is recognized for its potential in the AI era due to its extensive user data, despite a 38% decline in shares year-to-date [2]. Group 1: Analyst Ratings and Price Targets - Needham maintains a Buy rating on Reddit Inc. with a price target of $300, citing improving margins and benefits from large language model (LLM) training [2]. - Truist has raised its price target for Reddit Inc. from $270 to $275 while also keeping a Buy rating, highlighting the company's strength in user communication [2]. Group 2: Advertising Performance - Reddit Inc. has seen significant growth in advertising revenue, attributed to its competitive pricing compared to larger platforms like Instagram [2]. - The company offers targeted advertising at lower rates, making it an attractive option for advertisers [2]. Group 3: Data Value and Acquisition Interest - Jim Cramer expresses a strong belief in the value of Reddit's data, suggesting it is a valuable asset that could attract potential buyers [3][4]. - Cramer emphasizes the company's data as a significant store of value, indicating a positive outlook on its long-term potential [4].

Core Viewpoint - Reddit, Inc. (NYSE:RDDT) has been identified as a top pick for 2026 by Needham, driven by strong financial performance and strategic advantages in the AI landscape [1][4]. Financial Performance - For Q4 2025, Reddit reported revenues of $725.6 million, reflecting a 70% year-over-year increase and surpassing Needham's estimate by 9% [2]. - Adjusted EBITDA for the same quarter reached $327 million, marking a 112% year-over-year increase and exceeding analyst expectations by 16% [2]. - Non-GAAP earnings per share were reported at $1.72, a 99% year-over-year increase, which was 18% above the firm's estimate [2]. Revenue Drivers - The 70% revenue growth was primarily driven by a 75% year-over-year increase in ad revenue, with average revenue per user (ARPU) rising by 44% and user growth of 18% [3]. - Reddit's strategic position is enhanced by its commitment to "100% human-created content," which is increasingly valuable as AI language models become more prevalent [3][4]. Strategic Positioning - Needham emphasizes Reddit's execution excellence, noting over 60% revenue growth for the past six quarters, and highlights the platform's deep community moat that is difficult to replicate [4]. - The company is leveraging AI to enhance search functionality and improve user engagement, further solidifying its market position [4].

Core Insights - Reddit stock (NYSE: RDDT) is gaining renewed attention on Wall Street after a challenging year regarding growth and monetization [1] Company Summary - The social platform has faced skepticism over its growth potential and ability to monetize effectively [1] - Recent sentiment around Reddit stock indicates a shift towards optimism among investors [1]

Core Insights - Shirofune has integrated Reddit Ads into its digital advertising automation management platform, allowing advertisers to manage Reddit campaigns alongside other channels [1][4] - This integration aims to streamline the management of Reddit as part of a broader media strategy, enhancing efficiency for U.S. advertisers [2][3] Company Overview - Shirofune, founded in 2014, is an automated advertising management platform that focuses on maximizing efficiency and performance across major digital advertising channels [5] - The platform has managed over 10,000 accounts and 300,000 active campaigns, and is recognized as the only Yahoo! Ads API-certified partner tool in Japan [5] Integration Features - Centralized campaign management allows users to monitor and adjust Reddit campaigns from the same dashboard used for other platforms, reducing operational friction [6] - Automation of budgets and bids enables performance-based allocation, ensuring optimal spending on high-performing campaigns [6] - Funnel-aware strategies can be applied to align Reddit campaigns with various marketing objectives, enhancing targeting and conversion efforts [6] - Cross-channel performance can be viewed in one place, facilitating data-driven decisions and understanding the role of Reddit in overall campaign performance [6]

Group 1 - Reddit Inc. (NYSE:RDDT) is currently viewed as one of the best IPO stocks to buy, despite recent price target reductions by analysts [1] - Baird reduced its price target for Reddit to $200 from $240 while maintaining a Neutral rating, citing strong quarterly results and a positive outlook [1] - Piper Sandler lowered its price target for Reddit to $205 from $290 but kept an Overweight rating, noting strong user growth that exceeded expectations, although the growth was less than in the previous quarter [2] - Morgan Stanley cut its price target for Reddit to $240 from $265 while maintaining an Overweight rating, increasing revenue forecasts for fiscal years 2026 and 2027 by 1% each due to strong advertiser engagement [3] Group 2 - Reddit operates a global digital community platform that allows users to engage in conversations, explore interests, and create new communities [4]

Core Insights - Reddit is positioning 2025 as a breakthrough year, achieving over 60% revenue growth for six consecutive quarters and maintaining a 90% gross margin [3] - The company reported Q4 advertising revenue of $690 million, a 75% year-over-year increase, and projects Q1 2026 revenue between $595 million and $605 million, representing a 52%-54% growth [3] - Reddit is focusing on enhancing user engagement and monetization strategies, particularly through its Answers and Search services, which have seen significant growth in query volume [3][5] Revenue and User Metrics - Reddit has over 500 million monthly active users and 120 million daily active users, with a notable increase in engagement metrics [3][16] - The company has integrated login and non-login user experiences for ad visibility, aiming to increase overall engagement [7] Product Development and AI Integration - Reddit is investing in machine learning to improve user experience and streamline the onboarding process for new users [5] - The company is transitioning its relationship with Google and OpenAI from transactional to more collaborative product partnerships, with Reddit Profound being a key source for AI-generated answers [3][8] Advertising Strategy - Reddit Max is being developed to simplify the advertising process for existing clients, with a focus on converting lower-funnel advertisers [5] - The company emphasizes the importance of Return on Ad Spend (ROAS) and is working on enhancing measurement capabilities to support advertising effectiveness [9][13] Community and Brand Engagement - Brands are increasingly recognizing the value of engaging with Reddit's unique community, leading to the establishment of dedicated Reddit teams within their social media strategies [15] - The company aims to dispel the misconception of being a niche platform by highlighting its extensive user base and diverse community topics [16]

Core Insights - Reddit is positioning 2025 as a breakthrough year, with significant growth in revenue and user engagement, achieving over 60% revenue growth for six consecutive quarters and maintaining a 90% gross margin [1][3] - The company reported Q4 advertising revenue of $690 million, a 75% year-over-year increase, and provided guidance for Q1 2026 with expected revenue between $595 million and $605 million, reflecting a 52%-54% growth [1][13] - Reddit is focusing on monetizing its Answers and Search services, which have seen substantial increases in query volume, indicating a large market opportunity [1][8] Revenue and User Engagement - Reddit's Answers queries grew from 1 million to 15 million year-over-year, while overall search queries increased from 60 million to 80 million [1][3] - The company has over 500 million monthly active users and 120 million daily active users, with plans to enhance user experience for both logged-in and non-logged-in users [1][19] - The strategy includes increasing user engagement by eliminating the distinction between logged-in and non-logged-in users, allowing both to see ads [5][6] AI and Product Development - Reddit Profound is recognized as a leading source for AI-generated answers, with healthy partnerships with Google and OpenAI evolving from transactional to collaborative [2][7] - The company is investing in machine learning to improve user experience and streamline advertising processes, particularly through the Reddit Max initiative [3][10] - AI-generated content is viewed as beneficial for communication, but Reddit emphasizes the importance of human interaction and transparency in automated content [4][7] Advertising Strategy - The company is focused on enhancing the value of each ad impression by improving click-through rates and return on ad spend (ROAS) [8][10] - Reddit is testing new advertising solutions and interactive ads, aiming to provide a full-funnel solution for marketers [10][12] - The company is also investing in video content and automation to optimize advertising performance [10][12] Market Position and Brand Engagement - Brands are increasingly recognizing the value of engaging with Reddit's unique community, leading to the establishment of dedicated Reddit teams within their social media strategies [18][19] - The company aims to dispel the misconception of being a niche platform by highlighting its extensive reach across various topics and communities [19] - There is a continuous effort to integrate community insights into the advertising management platform to enhance brand visibility and engagement [19]