Reddit Stock Sinks 35% in 2026 Despite Higher Long-Term Revenue Forecasts
Reddit closed at $149.84 on September 25, down 34.8% from the end of 2025, even as consensus for 2028 revenue increased to about $5.5 billion. CEO Steve Huffman rejected fears that Reddit would get stuck at $4 billion-$5 billion in revenue, pointing to its broad addressable market and commercial discussions. U.S. daily active uniques slipped to 53.2 million in Q2, but U.S. revenue rose 56% and revenue per U.S. daily user climbed 51% to $11.85.
Reddit ended Sept. 25 at $149.84, roughly 34.8% lower than its 2025 close. Meanwhile, analysts' 2028 revenue consensus moved up from about $4.8B to $5.5B. CEO Steve Huffman, speaking Sept. 8, disputed the idea that Reddit would plateau in the $4B-$5B range, citing a vast addressable market and commercial conversations.
In Q2, U.S. daily actives eased to 53.2M from 53.5M, while U.S. sales rose 56% and revenue per U.S. daily user reached $11.85, up 51%. International daily users grew 28% to 77.1M, each generating $2.26. Q3 guidance is $860M-$870M, implying about 48% growth. Reddit held $2.765B net cash and expects roughly $500M of 2026 buybacks.
Reddit’s slide may weigh on retail investors, employees with equity, and index funds holding the stock. If management pushes harder into commerce and licensing, users and moderators could see more ads, paid features, or AI-related content deals. Advertisers may gain another targeted channel, while researchers and the public could be affected by how Reddit’s data is shared or restricted. The outcome remains uncertain and depends on user growth, monetization, and negotiations.