Reddit said it is investigating elevated errors across reddit.com and native apps. It further added that a fix to the problem has been implemented.
- As of 11:52 AM EST, Downdetector.com showed 112,856 users reporting problems while using Reddit.
- As per Downdetector, 54% of users reported problems while using the application of Reddit.
- Earlier in the day, Morgan Stanley raised the firm's price target on Reddit to $265 from $250.
Social media platform Reddit was hit by an outage that affected more than 100,000 users on Tuesday, according to outage monitoring website Downdetector. However, shares continued to rally on Wall Street firms’ price target actions on the company from earlier in the day.
As of 11:52 AM EST, Downdetector.com showed 112,856 users reported problems while using Reddit. It said 54% of users reported problems while using the application of Reddit. 39% users reported problems while using its website and 7% reported server connection related issues.
Reddit said it is investigating elevated errors across reddit.com and native apps, according to its status page. It added that the issue has been identified and a fix has been implemented at 12:03 PM EST.
Analyst Action
Morgan Stanley raised the firm's price target on Reddit to $265 from $250 and kept an ‘Overweight’ rating on the shares.
The firm thinks 2026 will be "thematically similar" to 2025 in the internet sector, with the market likely to reward companies demonstrating material positive return on invested capital (ROIC) from GenAI or GPU enabled technologies, the analyst told investors in a note, as per TheFly.
Evercore ISI also initiated coverage of Reddit with an ‘Outperform’ rating and $320 price target. The firm said it views Reddit’s valuation as very robust but reasonable, given its outlook for three-year revenue (Compound Annual Growth Rate) CAGR of 30%-40% and earnings before interest, taxes, depreciation, and amortization (EBITDA) CAGR of 40%-50%.
While the stock has performed well, the firm still sees significant opportunity for Reddit to gap up its average revenue per user, based on industry comps, recent product launches, and feedback from ad checks, the note said.
How Did Stocktwits Users React?
Retail sentiment around RDDT trended in ‘extremely bullish’ territory amid ‘high’ message volume.
One user said that Reddit has given more returns than Microsoft.
Another user predicted the stock price of Reddit to reach $300 price.
Shares of Reddit have risen 61% over the past year.
