12 Hot AI Stocks to Keep on Your Radar

8. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 80

Reddit, Inc. (NYSE:RDDT) is one of the 12 Hot AI Stocks to Keep on Your Radar. On January 12, Evercore ISI analyst Mark Mahaney initiated coverage on the stock with an Outperform rating and a price target of $320. Firm analysts believe RDDT has more room to turn its user engagement into revenue.

Analysts anticipate a three-year revenue compound annual growth rate of 30%-40%, driven by Reddit’s development of new features and more advanced ad products. This positions the company among the strongest growth profiles in the sector.

“Our Stock Call: We are initiating coverage of Reddit (RDDT) with an Outperform rating & a $320 price target (30% upside), based on 35x ’27E EBITDA of $1.8B. We view valuation (39x ’26 EBITDA) as very robust but reasonable, given our outlook for a 3-year Revenue CAGR of 30–40% & EBITDA CAGR of 40–50%, one of the strongest growth profiles in our sector. We see upside to Street ests — we are 4% above Street in ’27 on Revenue & EBITDA.”

RDDT has already been performing well, noted the analysts, but there is still significant opportunity for it to ramp up its average revenue per user. Factors such as industry comps, recent product launches, and feedback from ad checks are likely to lead to such a ramp.

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