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Quarterly Earnings Reports from Meta, Snap, and Reddit: What to Expect

Key Takeaways

This week, several social media giants, including Meta, Snap, and Reddit, are releasing their quarterly earnings reports. These results are anticipated to shed light on the current landscape of the digital advertising market. Notably, all three companies have encountered challenges this year due to ongoing economic uncertainties.

In addition to Meta (META), the parent company of Instagram and WhatsApp, Snap (SNAP) and Reddit (RDDT) are also scheduled to announce their earnings this week.

Snap is set to be the first to report, with its earnings announcement expected after the markets close on Tuesday. Deutsche Bank has maintained a “buy” rating on Snap’s stock but has adjusted its price target from $14 to $10, citing a decline in digital ad spending. This new price target comes in slightly below the consensus established by analysts surveyed by Visible Alpha, which stands at $11. This suggests a potential upside of approximately 25% from Snap’s closing price of $8.83 on Monday.

The stock has struggled particularly in 2025, experiencing an almost 18% decline year-to-date, largely due to the economic implications of President Trump’s fluctuating tariff policies. Meanwhile, Reddit’s shares have plummeted by over 25% during the same timeframe, and Meta has seen a decrease of 6%.

Analysts at Deutsche Bank have indicated they will be paying close attention to Snap’s earnings call, looking for insights into advertiser sentiment and the broader economic impacts on advertising budgets. They also noted that Snap is less vulnerable to fluctuations in Chinese e-commerce spending compared to some of its competitors, positioning it favorably if TikTok — a Chinese-owned platform — faces a ban in the U.S.

Reddit, which is expected to report its earnings on Thursday, has been significantly affected by recent macroeconomic challenges compared to its peers. Analysts highlighted that Reddit has been relying on experimental advertising budgets for expansion, which are typically the first to be cut in times of economic downturn. Consequently, Deutsche Bank has lowered its price target for Reddit from $235 to $180, although this figure remains above Wall Street’s consensus of $152 and the stock’s closing price of around $121 on Monday.

Daily active users will be a focal point for Reddit, especially after the platform fell short of expectations last quarter, partly due to updates in Google Search’s algorithm.

Last week, Google’s parent company, Alphabet (GOOGL), reported results that exceeded expectations, which could provide a favorable outlook for Reddit and suggest ongoing momentum for Snap, according to the analysts. Additionally, Alphabet’s recent success with AI features may have positive implications for Meta as it prepares to release its own results on Wednesday. Analysts are optimistic about Meta’s growth driven by advancements in artificial intelligence.

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