Reddit Shares Surge As App Downloads Spike: What's Going On?

Zinger Key Points

Reddit shares are rising as recent data shows app downloads surged in April and May, signaling accelerating user growth.
Analysts have raised price targets in recent weeks, citing strong momentum and expectations for continued monetization gains.
Geopolitical tensions, Fed uncertainty, and fast-moving headlines are driving July volatility. See how Chris Capre is trading it—live Wednesday, July 2 at 6 PM ET.

Reddit Inc. RDDT shares are trading higher Monday, continuing a strong run driven by anticipated user growth and rising investor optimism.

What To Know: Similarweb on Monday highlighted a surge in app store downloads for Reddit in recent months, noting that adoption appears to be skyrocketing. Download volumes surged 77.98% in April compared to March, followed by another 47.92% month-over-month increase in May. The spike comes after a year of relatively flat app downloads growth.

Shares have also seen strong momentum over the past quarter, gaining more than 44% over the last three months and more than 34% in the past month alone. Reddit is now up more than 127% over the past year, sharply rebounding from early 2025 lows. Its current market cap stands at approximately $26.4 billion, with the stock trading higher on above-average volume. The surge in activity may also be amplified by short covering, with 16.3% of Reddit's float sold short at last check, per Benzinga Pro.

Recent analyst updates suggest the rally could continue. Citigroup last week raised its price target to $163, citing sustained user growth and improving platform engagement. Guggenheim reiterated its $165 target, emphasizing Reddit's expanding monetization potential as it scales. The stock's consensus price target has edged higher, with analysts broadly maintaining a positive outlook.

Looking ahead, investors are focused on Reddit's next earnings release for concrete guidance on how the surge in downloads is translating into revenue. In the company’s most recent earnings report, Reddit emphasized plans to grow ad offerings, expand partnerships and improve personalization algorithms, all of which could help convert the platform's user momentum into sustained financial performance.

RDDT Price Action: Reddit shares were up 5.09% at $150.29 at the time of writing Monday, according to Benzinga Pro.

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