Reddit stock has surged 134% due to strong user growth and investments in AI-driven tools.

From Nasdaq: 2025-01-15 10:54:00

1. Reddit (RDDT) shares have surged 134% in the past six months, outperforming the Computer & Technology sector and the Internet – Software industry. This growth is attributed to strong user growth and investments in AI-driven tools.
2. Reddit’s partnerships with Alphabet and Integral Ad Science enhance content discovery and advertising performance. The platform’s AI advancements, including the testing of "Reddit Answers," aim to provide users with curated summaries and community recommendations.
3. Reddit’s advertising business grew 56% year-over-year to $315.1 million in Q3 2024. Enhanced ad products and increased engagement led to a 40% increase in conversation pageviews. The platform also saw a surge in daily active users, reflecting its growing popularity.
4. For 2025, Reddit is estimated to see revenue growth of 33.87% and earnings per share increase of 119.51%. With a Zacks Rank #2 (Buy) and a Growth Score of A, Reddit presents a strong investment opportunity in the advertising space.
5. RDDT stock may not be cheap, but its focus on expanding the advertising business and improving user experience justifies its valuation. Investors can capitalize on Reddit’s growth prospects in the advertising industry, international expansion, and enhanced search features.
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Read more at Nasdaq: Is Reddit Stock Still a Buy After Surging 134% Over the Past 6 Months?