Reddit Inc (NYSE:RDDT) is one of the 10 Stocks to Buy and Sell in 2025: Top Analyst Calls.
Megan Brantley from LikeFolio said in a recent program on Schwab Network that Reddit Inc (NYSE:RDDT) stock has been taking a hit amid investor concerns related to AI. These concerns stem from the assumption that when users can get answers from AI apps, they won’t visit Reddit Inc (NYSE:RDDT) pages. However, the analyst explained why she’s bullish on the social media stock and highlighted some data she called “phenomenal.”
“When we look at our data, we know that at least near-term right now the big driver for Reddit is advertising revenue. And so we track a lot of visits to ad managing platforms across the board from Reddit to Pinterest to as you can see on this chart to Google Ads below. And the data that we’re tracking for Reddit is pretty phenomenal. We’re seeing a massive uptick. And I think there are two takeaways here whenever you look at this chart is that we’re seeing a swing in a positive way just in overall advertising interest. So I think this is something where you know previously whenever we brought you this data there might have been one or two names in the green on this forward-looking ad interest and now we’re seeing a big spike. So we think that this is bullish for a lot of these names.”
Photo by Mohamed Hadji on Unsplash
With about 100 million daily active users, Reddit Inc (NYSE:RDDT) remains one of the fastest-growing social media platforms in the world. While Facebook and Twitter show signs of maturing growth, Reddit Inc (NYSE:RDDT) still has huge upside potential as more and more people flock to Reddit discussion boards for authentic opinions and discussion. User input from millions of people on various topics freely accessible to anyone is Reddit Inc (NYSE:RDDT)’s moat. That’s why companies are flocking to pay money to Reddit to use its data to train their AI models.
Maple Tree Capital stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q1 2025 investor letter:
“Reddit, Inc. (NYSE:RDDT) is Heartwood’s newest, and smallest, position. We anticipate growing this position in size over the coming quarters and years as the story parallels pretty closely to what we see in Grindr in the Jonagold portfolio. Reddit holds incredibly unique and structured user-generated data, which will be extremely valuable in the AI era. Additionally, their user base spends a ton of time on the app. It is far easier to monetize users if you have users! Reddit has spent decades acquiring a user base and is just at the beginning of their monetization journey. More people visit Reddit every day than they do Netflix. Their balance sheet is clean, but stock-based compensation and dilution are significant. We wrote a little more about Reddit here and expect to share more on our thesis shortly.”
While we acknowledge the risk and potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RDDT and that has 10,000% upside potential, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
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