Piper Sandler Raises Reddit (RDDT) PT to $290, Demonstrates Strong Ad Growth

Reddit Inc. (NYSE:RDDT) is one of the best new stocks to buy right now. On September 18, Piper Sandler raised the firm’s price target on Reddit to $290 from $210, while keeping an Overweight rating on the shares following positive Ad Metrics checks. Earlier in Q2 2025, Reddit reported strong financial performance, significantly beating analyst expectations with a diluted EPS of $0.45, compared to the expected $0.20.

Total revenue grew 78% year-over-year to $500 million, which marked the fastest quarterly growth rate since 2022. This growth was driven by a powerful advertising segment, which saw revenue increase by 84% to $465 million. Other revenue, which includes the data licensing business, reached $35 million, up 24%. The Average Revenue Per User grew 47% to $4.53.

The revenue growth was also robust regionally, with the US growing 79% and international markets growing 71%. User and product metrics also showed notable growth and traction. Daily Active Users grew 21% to 110 million, with growth in both the US and international markets. The company’s unique value proposition was highlighted by its status as the #1 most cited domain for AI across all models, validating the essential role of human conversation for LLM and AI search engine training.

Reddit Inc. (NYSE:RDDT) operates a digital community in the US and internationally. The company’s platform enables users to engage in conversations, explore passions, and exchange goods & services.

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Disclosure: None. This article is originally published at Insider Monkey.