DA Davidson lowers Reddit price target to $185

On September 17, DA Davidson lowered its price target on Reddit from $200 to $185 while maintaining its Buy rating. The brokerage pointed to near-term risks to daily active user growth and cited Similarweb data showing pressure on global traffic, warning that September trends may remain challenging.

Even so, DA Davidson highlighted that stronger app engagement could support average revenue per user. In the second quarter of 2026, Reddit saw daily active uniques rise 18% year over year to 130.3 million. Revenue grew to $805 million, marking eight straight quarters with revenue growth above 60% year over year. Net income reached $253 million, up by $164 million from the same quarter a year earlier.

Despite these financial results, Reddit shares are down more than 30% year-to-date. As of August 31, short interest accounted for 13.96% of the company's float. Across Wall Street, sentiment remains positive: 66% of the 35 analysts covering the stock rate it a Buy, with a median 12-month target of $212.50 representing about 34% upside as of September 21.