3 Reasons to Buy Reddit Stock This Week

RDDT reports Q3 earnings Thursday with the stock down 37% in 2027 and expectations running high, setting up a sharp reaction either way.

The bull case rests on growth and consistency. Reddit posted 61% revenue growth and has delivered consistent earnings beats. The stock also trades at historically low valuations, which means the 37% drawdown has compressed the multiple investors are paying for that growth. Interpretation: the market is pricing in a slowdown that the reported numbers have not yet shown.

The bear case centers on three concerns flagged ahead of the print:

• ▸User growth deceleration: A slowing user base challenges the durability of 61% revenue growth.
• ▸AI licensing renewals: Renewal of the company's AI licensing deals is an open question, and any lapse or repricing would matter for the revenue mix.
• ▸Long-term visibility: Limited clarity on the multi-year outlook keeps a lid on how much investors will pay.

Interpretation: with the stock already down 37%, a beat that confirms growth could force shorts and sidelined buyers to reprice quickly. But with expectations described as high, a clean beat alone may not be enough if user growth or licensing commentary disappoints.