Reddit, Pinterest shares tumble on weak user and revenue growth

Evercore ISI downgraded Reddit (RDDT) to In Line, lowering its price target to $120 from $265 due to user growth concerns. Reddit reported Q3 revenue of $895M, up 53% YoY, with EBITDA at $402M. U.S. daily active users declined 2% YoY, and management warned of potential global user declines. Several analysts adjusted price targets following the results.

Reddit (RDDT) shares fell 29% on Friday, closing at $91.73 and hitting a 52-week low of $89.28. The drop followed Q3 results that exceeded expectations but were accompanied by weak Q4 guidance.

Reddit's shares fell 29.22% to $91.73 after reporting Q3 2026 results and forecasting Q4 revenue of $1,000M-$1,030M. The company warned of a potential low-double-digit decline in daily active users due to reduced search referral traffic. Q3 revenue rose 53% YoY to $895M, with net income at $283M. Reddit repurchased 670K shares in Q3.

Reddit's stock fell 25% after its Q3 report, with revenue up 53% but daily U.S. users down 2%. B. Riley cut its price target to $190 (95% upside) but maintained a Buy rating, citing earnings and a lower multiple. Analysts' consensus target is $213, with concerns over user growth and guidance.

Evercore ISI downgraded Reddit to In Line from Outperform, cutting its price target to $120 from $265. The firm cited concerns over declining user traffic due to AI search summaries, despite Q3 earnings and revenue beating estimates. Reddit shares fell 29% post-earnings, with Q4 revenue guidance below expectations. The company reported a 2% YoY drop in U.S. daily active users and warned of potential low-double-digit declines globally in Q4.

Pinterest (PINS) shares dropped 7% after Q3 revenue of $1.17B missed estimates and Q4 guidance fell short of expectations. U.S. and Canada revenue grew 14%, but Europe was flat. CEO Bill Ready attributed the miss to cross-border seller pullbacks in Europe. Analysts expect 2026 revenue estimates to decrease.