Needham Continues To Stay Bullish on Reddit, Inc. (RDDT)

Reddit, Inc. (NYSE:RDDT) is among the 10 Stocks That Will Make You Rich Over the Next Decade. On May 15, Needham analyst Laura Martin reiterated a Buy rating on the stock with a price target of $300.

brett-jordan-0FytazjHhxs-unsplash

This is a reaffirmation of the firm’s previous update on May 1, following the company’s first-quarter results. According to TipRanks, the rating is based on the company’s growing user engagement and robust advertising dynamics, which present a strong case for revenue growth.

Moreover, the analyst noted an increase in active advertisers on the platform, with Reddit, Inc. (NYSE:RDDT) widely used for sports discussions, reinforcing its significance for marketers.

As of the close of business on Friday, the stock is a Moderate Buy based on 20 analysts’ recommendations and has an average share price upside potential of 37%.

The social media company reported revenue of $663 million for the first quarter, representing a 69% year-over-year increase and beating estimates of $610.9 million. Advertisement revenue was up 74% from the prior year to $625 million. Diluted EPS came in at $1.01, up seven times from the same period last year. Daily active unique users grew 17% to 126.8 million.

Reddit forecast second-quarter revenue and adjusted EBITDA both above Wall Street’s estimates, as AI-powered tools fuel advertisement growth on the platform.

Reddit, Inc. (NYSE:RDDT) is a social media platform that enables users to engage in conversations and create new digital communities and experiences.

READ NEXT: 9 Best Drone Stocks to Buy According to Wall Street Analysts and 10 Best Large Cap Defense Stocks to Buy According to Hedge Funds.

Disclosure: None. Follow Insider Monkey on Google News.