Reddit (RDDT) Is Up 6.4% After Bombora B2B Targeting Deal Announcement - Has The Bull Case Changed?

• On 3 December 2025, Bombora announced a partnership with Reddit to bring consent-based B2B company-level audience targeting across Reddit’s 23 billion-plus posts and comments, giving advertisers access to extensive firmographic, behavioral, and intent data segments.
• The collaboration positions Reddit as a more attractive hub for business decision-maker outreach by combining its deep discussion communities with Bombora’s curated B2B intent and account-based marketing audiences.
• We’ll now look at how Reddit’s expanded B2B targeting capabilities with Bombora could influence its investment narrative around advertising monetization.

Outshine the giants: these 25 early-stage AI stocks could fund your retirement.

Reddit Investment Narrative Recap

To own Reddit, you need to believe it can keep turning its highly engaged communities into profitable, privacy-conscious ad and data products. The Bombora partnership reinforces the near term advertising monetization catalyst by sharpening B2B targeting, but it does not materially change the key risk that Reddit still leans heavily on digital ad spend that could soften if formats underperform or macro conditions tighten.

The Bombora deal lines up closely with analysts’ focus on Reddit’s improving ad stack and formats, which have been cited alongside strong user engagement and data licensing as reasons for raised price targets. Together, richer intent data and better automation may help Reddit compete more effectively for performance-focused budgets and support its broader push to increase ad ROI across niche, decision maker heavy communities.

Yet against this progress, investors should also be aware that Reddit’s heavy reliance on digital advertising still leaves it exposed if...

Read the full narrative on Reddit (it's free!)

Reddit’s narrative projects $3.8 billion revenue and $1.0 billion earnings by 2028. This requires 31.8% yearly revenue growth and an earnings increase of about $783.7 million from $216.3 million today.

Uncover how Reddit's forecasts yield a $240.70 fair value, a 9% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members have 24 fair value estimates for Reddit that range from US$97 to US$336 per share, underscoring how far apart individual views can be. When you weigh these against Reddit’s push into more granular, consent based B2B targeting through Bombora, it becomes even more important to compare different expectations about how sustainable its ad driven growth really is.

Explore 24 other fair value estimates on Reddit - why the stock might be worth as much as 52% more than the current price!

Build Your Own Reddit Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Reddit research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Reddit research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Reddit's overall financial health at a glance.

Searching For A Fresh Perspective?

Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped:

• AI is about to change healthcare. These 30 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.
• We've found 14 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free.
• This technology could replace computers: discover 27 stocks that are working to make quantum computing a reality.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com