Reddit (RDDT) is expected to report fourth quarter earnings after the bell Wednesday, nearly a year after its blockbuster IPO. 

Shares of the social networking company, which became known as a destination for investor chatter during the post-pandemic meme stock craze, have risen more than 33% since the start of 2025 and 363% from February 2024. The increases are considerably higher than most of the so-called Magnificent 7 Big Tech stocks.

Reddit's stock performance has been bolstered by ad revenue growth and licensing deals with artificial intelligence giants. Here's what Wall Street analysts expect from Reddit's fourth quarter earnings, according to Bloomberg consensus estimates:

• Adjusted diluted earnings per share: $0.48

• Revenue: $405.5 million 

• Daily active users: 103.8 million

Investors view Reddit in part as an AI play. Reddit and OpenAI announced a partnership last May, which allows OpenAI to use Reddit content to train its large language model. Reddit has a similar content licensing deal with Google reportedly worth about $60 million per year. 

Reddit's revenue has surpassed analysts' expectations in every quarter since the company went public last March thanks to such licensing deals and the success of its digital advertising business. Shares skyrocketed after the social media platform in October reported its first-ever profit as a public company, driven by AI-fueled growth in its advertising revenue.

Analysts at Raymond James (RJF), Deutsche Bank (DB), and Jefferies (JEF) recently issued optimistic notes on Reddit stock and maintained their Buy ratings on shares. Raymond James' Josh Beck on Monday raised his price outlook on Reddit shares to $250 from $200, while Deutsche (DB) analyst Benjamin Black lifted his price target on the stock to $235 from $195. The analysts cited the company's rising advertising revenue, data licensing deals, and its focus on international growth. Jefferies (JEF) analyst John Colantuoni maintains a slightly more modest $230 price outlook on shares. 

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"Reddit shares have risen above internet peers YTD for good reason," wrote Beck in his Monday note to investors, adding, "if confidence in mid-/long-term growth initiatives like international and search ... with high incremental margins continues to improve, Reddit is likely to retain status as an elite hyper-growth platform." Reddit introduced an AI search tool in December.

Deutsche's Black said Reddit's "AI-driven durability" is in focus for investors, adding: "From a fundamentals perspective, we think the company is well-positioned," given its artificial intelligence features for advertisers, new AI search tool called Reddit Answers, and a "healthy" broader digital advertising market. 

Better-than-expected revenues from the advertising businesses of companies such as Snap (SNAP), Pinterest (PINS), Meta (META), and Google (GOOG) are positive indications for Reddit's performance, analysts said.

Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @laurabratton.bsky.social. Email her at laura.bratton@yahooinc.com.

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