15 AI Stocks Surging on News and Analyst Ratings

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8. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 87

Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement. On May 19, Wells Fargo analyst Ken Gawrelski downgraded the stock to “Equal Weight” from Overweight with a price target of $115, down from $168. With Google likely to fully integrate artificial intelligence search capabilities in search soon, the firm believes that Reddit’s recent user drop may be permanent. The analyst told investors in a research note how these threats don’t only apply to Reddit, but to all companies dependent on search traffic. With Google more aggressively implementing AI features in search, Wells Fargo sees logged-out user declines for Reddit. The firm also expects Reddit’s stock to remain under pressure because of user disruption.

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