10 AI Stocks Analysts are Tracking Closely

7. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 74

Reddit, Inc. (NYSE:RDDT) is one of the 10 AI Stocks Analysts are Tracking Closely. On November 14, Truist Securities analyst Youssef Squali reiterated a “Buy” rating on the stock with a $270.00 price target.

The firm believes that improving engagement, ad efficiency, and margin expansion will continue driving growth for the stock.

Truist had an investor group call with the company this month, followed by subsequent investor conversations. The conversations particularly focused on key issues affecting Reddit’s near to medium-term outlook.

“Following our investor group call with the company last week and conversations with investors since then, we further zero in on key issues most relevant to the stock N/M-term including 1) the debate around the potential for DAU re-acceleration and increase in user engagement with the new and improved onboarding process, and the better AI-enhanced search experience expected in FY26, 2) the ability to sustain highly elevated revenue growth through improvements in ad monetization with end-to-end automation tools, and 3) the prospect for the company to show progress towards 50% AEBITDA margin now that it achieved its prior 40% target margin ahead of plans (in 3Q25).”

The firm believes that user engagement should improve, driven by new onboarding and AI-enhanced search. Better ad monetization tools may lead to gains from end-to end automation tools, while AEBITDA margin could progress toward 50%, ahead of plan.

Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.