Reddit Inc Class A, the Communication Services sector company, was revisited by a Wall Street analyst today. Analyst Laura Martin from Needham maintained a Buy rating on the stock and has a $300.00 price target.
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Laura Martin’s rating is based on Reddit Inc’s impressive financial performance and growth metrics. The company reported a significant increase in revenue for the third quarter of 2025, with a 68% year-over-year rise, driven primarily by a 74% growth in advertising revenue. This was complemented by a substantial increase in average revenue per user, which rose by over 41% compared to the previous year.
Furthermore, Reddit Inc demonstrated strong operational efficiency, with gross margins expanding to 91% and adjusted EBITDA margins reaching a record 40%. The company also reported a healthy free cash flow of $183 million for the quarter, contributing to a trailing twelve-month total of $500 million. With cash and cash equivalents amounting to $2.2 billion as of September 30, 2025, these factors collectively underpin Laura Martin’s Buy rating for Reddit Inc Class A stock.
According to TipRanks, Martin is a 4-star analyst with an average return of 8.0% and a 49.10% success rate. Martin covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Roku, and Reddit Inc Class A.
In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $290.00 price target.