Reddit, Inc. (NYSE:RDDT) on Thursday posted upbeat earnings for the third quarter, but issued weaker-than-expected guidance.

Reddit reported third-quarter revenue of $895 million, up 53% year over year and above the $878.02 million analyst estimate. Earnings per share came in at $1.40, beating the $1.36 consensus.

The company forecast fourth-quarter revenue of $1.00 billion-$1.03 billion, below the $1.046 billion analyst estimate.

“Our business is growing because the Reddit experience captures the human experience in a way that no other platform can replicate,” said Steve Huffman, Founder and CEO of Reddit. “Surpassing $3B of revenue over the last 12 months shows Reddit’s strength as a destination and the differentiated value of our platform.”

Reddit shares fell 21.6% to $101.60 in pre-market trading.

These analysts made changes to their price targets on Reddit following earnings announcement.

• Cantor Fitzgerald analyst Deepak Mathivanan maintained the stock with a Neutral and lowered the price target from $170 to $120.
• Keybanc analyst Devin Au downgraded the stock from Overweight to Sector Weight.
• Needham analyst Laura Martin maintained the stock with a Buy and lowered the price target from $300 to $150.

Considering buying RDDT stock? Here’s what analysts think:

Photo via Shutterstock

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.