Cantor Fitzgerald cuts Reddit price target on revenue slowdown

Cantor Fitzgerald lowered its price target for Reddit Inc. from $170 to $120 on Thursday, maintaining a Neutral rating on the stock. The firm noted third-quarter revenue slightly exceeded market estimates, though the outperformance was modest compared to recent quarters, and its fourth-quarter revenue forecast was slightly below expectations. Reddit's stock has fallen 44% this year to $94.38, near its 52-week low of $119.27. Daily active users in the third quarter missed by 3 million due to ongoing search engine referral headwinds, which the company expects to persist in the fourth quarter. Reddit plans to test a primarily logged-in experience in select markets, potentially increasing volatility in user metrics. Cantor Fitzgerald called third-quarter results mixed, with the revenue slowdown likely reigniting debates about monetization growth potential. Other firms including Guggenheim, Needham, and BofA Securities also cut price targets, while KeyBanc and Citizens downgraded their ratings, citing declining search traffic and user growth concerns.