Shares of Reddit Inc. (NYSE:RDDT) have surged to an all-time high of $253.57, giving the social media company a market capitalization of $47.12 billion. Over the past year, the stock has delivered a remarkable return of more than 320%, signaling strong investor confidence in Reddit’s growth trajectory. The company boasts gross profit margins of 91%, highlighting operational efficiency as it continues to expand its footprint in the social media landscape. Revenue has climbed nearly 70% over the last twelve months, reflecting the platform’s expanding user base and monetization efforts.
Reddit’s growth momentum is supported by robust second-quarter results, with revenue surpassing expectations and a promising outlook for the third quarter. Global daily active users rose 21% to 110.4 million, exceeding analyst projections. Deutsche Bank responded by raising its price target to $205 while maintaining a Buy rating, citing the strong user growth. Morgan Stanley also increased its target to $230, pointing to better-than-expected metrics in the U.S., where user engagement remained steady.
Jefferies took a bullish stance with a $300 target, emphasizing stable daily active user trends and sustainable revenue growth. RBC Capital maintained its Sector Perform rating at $210, highlighting opportunities in ad monetization and platform expansion. Meanwhile, BofA Securities lifted its target to $180, noting improved execution and a 50% jump in advertiser adoption. Overall, analyst sentiment reflects optimism about Reddit’s performance and its future potential.
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