What Happened?
Shares of online community and discussion platform Reddit (NYSE: RDDT) jumped 1.3% in the morning session after Needham raised its price target on the stock to $300 from $215, while maintaining a Buy rating.
The research firm cited generative artificial intelligence (GenAI) and rising labor productivity as key reasons for its increased confidence and revised estimates for fiscal years 2025 and 2026. This positive analyst action follows a period of strong business performance for the social media platform, which saw advertising revenue grow 84% year-over-year in the second quarter, driven by a 50% increase in active advertisers. Other firms have also recently expressed bullish sentiment, with Jefferies raising its price target to $300 and Deutsche Bank increasing its target to $205, both maintaining Buy ratings.
After the initial pop the shares cooled down to $260.06, up 2.3% from previous close.
Is now the time to buy Reddit? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Reddit’s shares are extremely volatile and have had 63 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 5 days ago when the stock gained 8.2% on the news that Jefferies raised its price target on the stock and the company launched a new strategic toolkit for publishers.
The investment firm boosted its price target to $300 from $230, maintaining a Buy rating. Jefferies cited the sustainability of Reddit's revenue growth, which has accelerated to multi-year highs, and noted that data licensing represents an "underappreciated call option" that could significantly increase earnings.
Reddit is up 56.7% since the beginning of the year, and at $260.06 per share, it is trading close to its 52-week high of $260.54 from September 2025. Investors who bought $1,000 worth of Reddit’s shares at the IPO in March 2024 would now be looking at an investment worth $5,156.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
