10 Trending AI Stocks According to Analysts

7. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 80

Reddit has recently emerged as Needham’s Top Pick for 2026. On February 9, the firm’s analyst Laura Martin reiterated a Buy rating on the stock with a $300.00 price target. RDDT’s Top Pick ranking is supported by execution excellence, rapid margin expansion, and deep community moat.

The company reported its fourth-quarter 2025 financial results last week, posting revenues of $725.6 million for Q4 2025, a 70% year-over-year increase and beating Needham’s estimate by 9%.

Its adjusted EBITDA reached $327 million, up 112% year-over-year and 16% above analyst’s expectations. Non-GAAP earnings per share came in at $1.72, a 99% year-over-year increase and exceeding the firm’s estimate by 18%.

The 70% rise in revenues, the firm highlighted, were driven by 75% year-over-year ad revenue growth, with average revenue per user (ARPU) up 44% and user growth of 18%.

It has highlighted Reddit as its top pick for 2026 based on the platform’s strategic position with “100% human-created content.” This is a factor that becomes more valuable and differentiated as AI language models proliferate.

Needham also acknowledged Reddit’s “execution excellence” with over 60% revenue growth for the past six quarters.

“Our Take RDDT is our top pick for 2026, based on: Strategic position with 100% human-created content, which becomes more differentiated and valuable as LLM bots multiply; Execution excellence, with >60% rev growth for the past 6 quarters, ad revs up 75% in 4Q25, optionality upside from LLM licensing revs and rapid margin expansion, and, Difficulty in replicating a human community like RDDT today, creates a deep moat.”

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