Needham Ups Reddit Target to $165

Reddit, Inc. (NYSE:RDDT) is one of the best multibagger stocks according to hedge funds. On July 23, 2025, Needham analyst Laura Martin raised her price target on Reddit from $145 to $165, while maintaining a “Buy” rating.

Reddit’s latest quarter came in ahead of expectations, and momentum looks set to continue. Daily active users are climbing, and ad revenue, especially from direct-response formats, is gaining traction. The pivot toward full-funnel advertisers, paired with launches like Reddit Search and Reddit Answers, is deepening engagement and improving content discovery.

Needham Ups Reddit Target to $165

brett-jordan-0FytazjHhxs-unsplash

Financially, the company is benefiting from expanding margins and accelerating free cash flow. Meanwhile, AI is playing a growing role: new translation features aim to accelerate global user growth, and early results from Reddit Insights suggest the platform is beginning to monetize generative AI effectively.

Reddit, Inc. (NYSE: RDDT) is a social media platform based in San Francisco that hosts user-generated content across thousands of interest-based forums called subreddits, and primarily generates revenue through digital advertising.

While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

[/im-yf-promo]

While we acknowledge the potential of RDDT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None.