Reddit Ad Growth Outlook Strong, but User Onboarding Slows Monetization Debate, Morgan Stanley Says

MT Newswires Live02-07 00:55

Reddit (RDDT) has a long advertiser growth runway supported by a strong pipeline of initiatives into 2026, but slower progress on US logged-in user onboarding clouds the long-term monetization debate, Morgan Stanley said in a note Friday.

The firm raised its 2026 and 2027 revenue estimates by 1% each as advertiser breadth and spend depth continue to improve, the note added.

Morgan Stanley said active advertisers rose 75% year over year in Q4 for a second straight quarter and it expects further gains as Reddit Max scales and automation expands.

US logged-in user growth came in about 300,000 below it's estimate and fell 100,000 sequentially as Reddit tests a new onboarding flow, Morgan Stanley said.

The firm said early tests have helped retention, but rollout is taking longer than expected and feed improvements are likely to drive only gradual user growth recovery, with progress more likely in H2 2026.

Morgan Stanley maintained an overweight rating for Reddit and cut its price target to $240 from $265.

Price: 148.25, Change: -2.83, Percent Change: -1.87

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2609518285?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2026-02-07 00:55","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2609518285","market":"sh","top_or_hot":-1,"title":"Reddit Ad Growth Outlook Strong, but User Onboarding Slows Monetization Debate, Morgan Stanley Says","media":"MT Newswires Live","content":"<html><body><p> <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> (RDDT) has a long advertiser growth runway supported by a strong pipeline of initiatives into 2026, but slower progress on US logged-in user onboarding clouds the long-term monetization debate, Morgan Stanley said in a note Friday.</p><p>The firm raised its 2026 and 2027 revenue estimates by 1% each as advertiser breadth and spend depth continue to improve, the note added.</p><p>Morgan Stanley said active advertisers rose 75% year over year in Q4 for a second straight quarter and it expects further gains as Reddit Max scales and automation expands.</p><p>US logged-in user growth came in about 300,000 below it's estimate and fell 100,000 sequentially as Reddit tests a new onboarding flow, Morgan Stanley said.</p><p>The firm said early tests have helped retention, but rollout is taking longer than expected and feed improvements are likely to drive only gradual user growth recovery, with progress more likely in H2 2026.</p><p>Morgan Stanley maintained an overweight rating for Reddit and cut its price target to $240 from $265.</p><p>Price: 148.25, Change: -2.83, Percent Change: -1.87</p></body></html>","source":"mtnewswires_news","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Reddit Ad Growth Outlook Strong, but User Onboarding Slows Monetization Debate, Morgan Stanley Says</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nReddit Ad Growth Outlook Strong, but User Onboarding Slows Monetization Debate, Morgan Stanley Says\n</h2>\n\n<h4 class=\"meta\">\n\n\n<a class=\"head\" href=\"https://laohu8.com/wemedia/1092851196\">\n\n\n<div class=\"h-thumb\" style=\"background-image:url(https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e);background-size:cover;\"></div>\n\n<div class=\"h-content\">\n<p class=\"h-name\">MT Newswires Live </p>\n<p class=\"h-time\">2026-02-07 00:55</p>\n</div>\n\n</a>\n\n\n</h4>\n\n</header>\n<article>\n<html><body><p> <a href=\"https://laohu8.com/S/RDDT\">Reddit</a> (RDDT) has a long advertiser growth runway supported by a strong pipeline of initiatives into 2026, but slower progress on US logged-in user onboarding clouds the long-term monetization debate, Morgan Stanley said in a note Friday.</p><p>The firm raised its 2026 and 2027 revenue estimates by 1% each as advertiser breadth and spend depth continue to improve, the note added.</p><p>Morgan Stanley said active advertisers rose 75% year over year in Q4 for a second straight quarter and it expects further gains as Reddit Max scales and automation expands.</p><p>US logged-in user growth came in about 300,000 below it's estimate and fell 100,000 sequentially as Reddit tests a new onboarding flow, Morgan Stanley said.</p><p>The firm said early tests have helped retention, but rollout is taking longer than expected and feed improvements are likely to drive only gradual user growth recovery, with progress more likely in H2 2026.</p><p>Morgan Stanley maintained an overweight rating for Reddit and cut its price target to $240 from $265.</p><p>Price: 148.25, Change: -2.83, Percent Change: -1.87</p></body></html>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"LU0006306889.USD","symbol_name":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","start_time":0,"source_url":"https://www.mtnewswires.com/","article_id":"2609518285","we_media_id":"1092851196","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2609518285","pubTimestamp":1770396947,"columns":[],"sourceInfo":{"source_id":"mtnewswires_news","name":"MT Newswires"},"weMediaInfo":{"media_name":"MT Newswires Live","introduction":"The most recognized names in North America, Europe and Asia rely on MT Newswires to power their applications. Better news, better service, better price.","home_visible":1,"id":"1092851196","head_image":"https://community-static.tradeup.com/news/3002d84abbd5ace3c99397c7f95b8d4e"},"summary":"Reddit  has a long advertiser growth runway supported by a strong pipeline of initiatives into 2026, but slower progress on US logged-in user onboarding clouds the long-term monetization debate, Morgan Stanley said in a note Friday.The firm raised its 2026 and 2027 revenue estimates by 1% each as advertiser breadth and spend depth continue to improve, the note added.Morgan Stanley said active advertisers rose 75% year over year in Q4 for a second straight quarter and it expects further gains as Reddit Max scales and automation expands.US logged-in user growth came in about 300,000 below it's estimate and fell 100,000 sequentially as Reddit tests a new onboarding flow, Morgan Stanley said.The firm said early tests have helped retention, but rollout is taking longer than expected and feed improvements are likely to drive only gradual user growth recovery, with progress more likely in H2 2026.Morgan Stanley maintained an overweight rating for Reddit and cut its price target to $240 from $","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"LU0006306889.USD":"SCHRODER ISF US LARGE CAP \"A\" (USD) INC AV","LU1720051108.HKD":"ALLIANZ GLOBAL ARTIFICIAL INTELLIGENCE \"AT\" (HKD) ACC","LU1989772923.USD":"CPR Invest - Climate Action A2 Acc USD-H","LU2290526834.HKD":"BGF NEXT GENERATION TECHNOLOGY \"A2\" (HKDHDG) ACC","LU0098860793.USD":"FRANKLIN INCOME \"A\" INC","LU1732799900.SGD":"JPMorgan Investment Funds - Global Income A (irc) SGD-H","LU0557290698.USD":"施罗德环球可持续增长基金","RDDT":"Reddit","LU0158827948.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"A\" (USD) INC","LU2089283258.USD":"安联环球可持续基金Cl AM Dis","LU0158827781.USD":" ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (USD) ACC","BK4581":"高盛持仓","LU0320765646.SGD":"FTIF - Franklin Income A MDIS SGD-H1","LU2028103732.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AMG\" (USD) INC","LU0528227936.USD":"富达环球人口趋势基金A-ACC","LU1244550221.USD":"FRANKLIN GLOBAL MULTI-ASSET  INCOME \"A\" (USDHEDGED) INC (M)","LU1861215975.USD":"贝莱德新一代科技基金 A2","LU2357305700.SGD":"Allianz Global Artificial Intelligence ET H2-SGD","LU0971096721.USD":"富达环球金融服务 A","BK4077":"互动媒体与服务","LU2360107168.USD":"BGF NEXT GENERATION TECHNOLOGY \"A4\" (USD) INC","LU1791710582.SGD":"Fidelity Global Demographics A-ACC-SGD (SGD/USD hedged)","LU0912757837.SGD":"JPMorgan Investment Funds - Global Income A (mth) SGD-H","LU1732800096.USD":"摩根大通环球收益基金A (irc)","LU1861220033.SGD":"Blackrock Next Generation Technology A2 SGD-H","BK4534":"瑞士信贷持仓","BK4585":"ETF&股票定投概念","LU1791710400.SGD":"Fidelity Global Demographics A-ACC-SGD","LU1720051017.SGD":"Allianz Global Artificial Intelligence AT Acc H2-SGD","LU2133065610.SGD":"JPMorgan Investment Funds - Global Dividend A (mth) SGD","LU0795875169.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD-H","LU0106831901.USD":"贝莱德世界金融基金A2","LU1162221912.USD":"FRANKLIN INCOME \"A\" (USD) ACC","LU2347655156.SGD":"JPMorgan Investment Funds - Global Income A (icdiv) SGD-H","BK4127":"投资银行业与经纪业","LU0314104364.USD":"MANULIFE GF AMERICAN GROWTH \"AA\" (USD) INC","LU0795875086.SGD":"JPMorgan Investment Funds - Global Income A (div) SGD","LU0882574139.USD":"富达环球消费行业基金A ACC","LU1668664300.SGD":"Blackrock World Financials A2 SGD-H","RDTL":"2倍做多RDDT ETF-GraniteShares","IE00BKVL7J92.USD":"Legg Mason ClearBridge - US Equity Sustainability Leaders A Acc USD","LU1244550494.USD":"FRANKLIN GLOBAL MULTI-ASSET INCOME \"A\" (USDHEDGED) ACC","LU1244550577.SGD":"FTIF - Franklin Global Multi-Asset Income A (Mdis) SGD-H1","LU0106261372.USD":"SCHRODER ISF US LARGE CAP \"A\" ACC","BK4516":"特朗普概念","BK4547":"WSB热门概念","LU2089284900.SGD":"Allianz Global Sustainability Cl AM Dis H2-SGD","LU0267386448.USD":"FIDELITY FIRST ALL COUNTRY WORLD \"A\" (USD) INC","LU0225283273.USD":"SCHRODER ISF GLOBAL EQUITY ALPHA \"A\" (USD) ACC","LU2023251221.USD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (USD) INC","LU2271345857.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AT\" (HKD) ACC","BK4504":"桥水持仓","IE00BZ1G4Q59.USD":"LEGG MASON CLEARBRIDGE US EQUITY SUSTAINABILITY LEADER \"A\"(USD) INC (A)","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","BK4588":"碎股","LU2111349929.HKD":"ALLIANZ GLOBAL SUSTAINABILITY \"AM\" (HKD) INC","LU1548497426.USD":"安联环球人工智能AT Acc","LU1989772840.SGD":"CPR Invest - Climate Action A2 Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close"},"translate_title":"摩根士丹利表示，Reddit广告增长前景强劲，但用户入职减缓了货币化辩论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"RDTL":0.6,"RDDT":1.96},"content_text":"Reddit (RDDT) has a long advertiser growth runway supported by a strong pipeline of initiatives into 2026, but slower progress on US logged-in user onboarding clouds the long-term monetization debate, Morgan Stanley said in a note Friday.The firm raised its 2026 and 2027 revenue estimates by 1% each as advertiser breadth and spend depth continue to improve, the note added.Morgan Stanley said active advertisers rose 75% year over year in Q4 for a second straight quarter and it expects further gains as Reddit Max scales and automation expands.US logged-in user growth came in about 300,000 below it's estimate and fell 100,000 sequentially as Reddit tests a new onboarding flow, Morgan Stanley said.The firm said early tests have helped retention, but rollout is taking longer than expected and feed improvements are likely to drive only gradual user growth recovery, with progress more likely in H2 2026.Morgan Stanley maintained an overweight rating for Reddit and cut its price target to $240 from $265.Price: 148.25, Change: -2.83, Percent Change: -1.87","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":false,"code":"91000000","status":"200"},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"tenantId":"TBGLOBAL","deviceId":"web-server-community-laohu8-v3","version":"4.36.2","shortVersion":"4.36.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2609518285","isCrawlerRequest":true}