Reddit Shares Drop 6.2% After Analyst Downgrade

Wall Street Zen downgrades stock from 'buy' to 'hold' rating

Apr. 9, 2026 at 2:43pm by Ben Kaplan

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Shares of Reddit Inc. (NYSE:RDDT) fell 6.2% on Thursday after Wall Street research firm Zen Analysts downgraded the stock from a 'buy' rating to a 'hold' rating. The stock traded as low as $137.01 before closing at $136.01, down from the previous close of $145.00. Trading volume was down 86% from the average daily volume.

Why it matters

Reddit's stock price has been volatile in recent months as the company navigates a shifting market landscape for social media and online communities. This downgrade from a prominent analyst firm signals potential concerns about the company's near-term growth prospects, which could impact investor sentiment and the stock's performance.

The details

Several other research analysts have also weighed in on Reddit's stock in recent months. Cantor Fitzgerald lowered their price target from $240 to $170, while Guggenheim increased their target from $245 to $255 and maintained a 'buy' rating. Zacks Research also downgraded the stock from 'strong buy' to 'hold'.

  • Reddit shares fell 6.2% on Thursday, April 9, 2026.
  • The stock traded as low as $137.01 during the trading session.

The players

Wall Street Zen

A Wall Street research firm that downgraded Reddit's stock from 'buy' to 'hold' rating.

Reddit Inc.

The social media and online community platform company that trades on the New York Stock Exchange under the ticker symbol RDDT.

Steve Huffman

The co-founder and CEO of Reddit.

Jennifer L. Wong

The chief operating officer of Reddit.

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What’s next

Investors will be closely watching Reddit's upcoming earnings report and any further analyst commentary on the stock's outlook.

The takeaway

Reddit's stock price volatility reflects the challenges facing social media platforms as they navigate changing market dynamics and investor sentiment. The company's ability to maintain growth and profitability will be key to its long-term success.