Reddit 's latest blockbuster results left investors stunned on Tuesday morning. The social media company reported third-quarter earnings of 16 cents per share, whereas analysts polled by LSEG had estimated a loss of 7 cents per share. Reddit's $348.4 million revenue also beat expectations of $312.8 million. Additionally, Reddit guided for fourth-quarter revenue of between $385 million and $400 million, while analysts had estimated an average of $357.9 million.
mountain chart Following Reddit's results, analysts largely stood by their existing ratings on the stock. Citi analyst Ronald Josey reiterated his buy rating and hiked his target price to $120 from $70. This updated forecast corresponds to a nearly 47% upside for shares of Reddit from Tuesday's close. Josey wrote that Reddit's continued user growth and engagement gains have boosted the company — and should continue to do so.