Macro sentiment analysis reveals that the reddit stock price forecast is contingent on broader Nasdaq performance. Correlation models suggest a beta of 1.22, implying Reddit could outperform in tech-led rallies while remaining vulnerable to sector corrections. Reddit on Tuesday reported net income of nearly $30 million for the third quarter, while its revenue of $348.4 million for the period topped analyst forecasts. Those figures were up from a loss of $7.4 million on sales of $207.5 million a year ago. Showing impressive customer growth, the business now has more than 97 million daily users, up 47% from a year ago. For comparison, Meta Platforms generated about $13.36 in advertising revenue per daily active user in Q2 across all its apps, not just the heavily monetized Facebook and Instagram. Reddit has room to more than triple its revenue per daily active user before it catches up with Meta. Add in user growth, and Reddit should be able to grow revenue at a double-digit pace for a very long time. Quantitative hedge fund models project a 0.85 correlation between Reddit’s price moves and exogenous digital ad market growth, underlining the strategic drivers in the reddit stock price forecast.
