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Reddit (RDDT) is expected to announce fourth quarter results on Wednesday, February 12 after the market close, with a conference call scheduled for 5:00 pm EDT. What to watch for:

GUIDANCE: In October, Reddit posted earnings per share of 16c vs. a (13c) loss last year, with revenue of $348.4M beating consensus estimates. Daily Active Uniques were up 47% globally in the quarter, while Weekly Active Uniques averaged 365.4M in the quarter, an increase of 53% year-over-year. For Q4, Reddit forecast revenue of $385M-$400M and adjusted EBITDA of $110M-$125M. The October revenue consensus was $357.9M, but has since ticked higher to $405.55M.

Other publicly traded companies in the social media space include Meta Platforms (META), Pinterest (PINS), and Snap (SNAP).

UPSIDE TO ESTIMATES: On February 6, Seaport Research initiated coverage of Reddit with a Neutral rating and no price target. The firm sees shares discounting continued revenue strength and upside to consensus estimates, so it believes shares are fairly valued at current levels. While neutral on valuation, the firm is "positive on long-term fundamentals" given its view that Reddit has evolved to become one of the internet's largest user destinations and it expects continued user growth momentum. The firm also believes Reddit is an attractive platform for advertisers with a significant monetization opportunity ahead, the analyst added.

CAMPAIGN IMPORT FEATURE: Piper Sandler said late last month that the firm noticed a new feature in Reddit Ads Manager, namely a beta option to import a campaign from the Meta Ads Manager. The firm, which thinks this looks like "an interesting strategy that can help onboard advertisers to Reddit from the 10MM+ that currently spend on Meta today," believes this could be a topic of discussion on Reddit's earnings call. Ahead of the call, Piper maintained an Overweight rating and $197 price target on Reddit shares.

'BROADLY POSITIVE': JMP Securities is "broadly positive" into Q4 digital advertising earnings, as the firm believes the advertising environment is healthy, driven by positive consumer spending over the holiday period, the contribution of political ad spend, and better business sentiment, while the uncertainty around and disruption to TikTok likely aided the coverage universe, the analyst tells investors in a research note.

Constructive channel checks for Reddit and a healthy direct response ad environment suggests another quarter of possibly accelerating ad revenue growth above guidance and estimates in Q4, BofA told investors.

'CRUCIAL' MOMENT FOR GENAI: In January, Raymond James raised the firm's price target on Reddit to $200 from $150 and kept a Strong Buy rating on the shares. The firm remains bullish on the internet sector, telling investors in a research note that the year ahead marks a crucial moment for GenAI commercialization as capital expenditure concerns could be mitigated as assistant-oriented use cases quickly develop into more agentic flows across consumer and enterprise software and HardTech applications. While there are still a few "wild cards" tied to tariffs, AI regulation, antitrust, and TikTok at play, the macro is on steadier footing, the firm said.

Guggenheim said Reddit is poised to capitalize on strong social media growth in "the quarters and years ahead," citing the company's growing and "highly engaged" user base" and "significant ad monetization improvement opportunities."

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