Key Takeaways

Meta ( META ) isn't the only social media company reporting earnings this week .

Along with Instagram and WhatsApp parent Meta, Snap ( SNAP ) and Reddit ( RDDT ) are due to release quarterly results this week, offering more insights into the state of the digital advertising market.

Snap is up first, with its earnings expected after the market closes Tuesday. Deutsche Bank analysts have a “buy” rating for the stock but lowered their price target to $10 from $14 on Monday, citing a pullback in digital ad spending. Their target is just below the consensus of analysts polled by Visible Alpha at $11, which would imply roughly 25% upside from Monday’s close at $8.83.

The stock has had a tough start to 2025, with shares down about 18% year-to-date amid economic uncertainty in the face of President Trump's shifting tariff policies . Reddit shares have lost over one-quarter of their value over the same period, while Meta shares dropped 6%.

The Deutsche Bank analysts said they will be watching Snap’s earnings call for “clarity on advertiser sentiment and the impact on the macro environment to budgets.” However, Deutsche Bank noted the platform is less exposed to Chinese e-commerce spending than some of its peers, and could be a beneficiary if Chinese-owned TikTok is ultimately banned in the U.S.

Reddit, slated to report Thursday, has “been the most impacted by recent macro weakness of its peer groups,” the analysts said, adding the company “has tapped into experimental ad budgets for growth, which tend to be the first cut in a pullback.” Deutsche Bank dropped its price target to $180 from $235, though still above the Street consensus of $152 and Monday's close around $121.

Daily active users will also be in focus after Reddit missed expectations a quarter ago, thanks in part to changes to the Google Search algorithm.

Google parent Alphabet ( GOOGL ) had posted better-than-expected results last week, in what could offer a "positive read-through" for Reddit and support "sustained momentum" for Snap, the analysts said. Alphabet's signs of success with AI features could also bode well for Meta, set to report Wednesday, with analysts largely bullish on its AI-driven growth.

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