Needham analyst Laura Martin maintained a Buy rating on Reddit Inc Class A today and set a price target of $215.00.
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Laura Martin’s rating is based on Reddit Inc’s impressive financial performance and strong future guidance. The company reported substantial growth in its second quarter of 2025, with revenues reaching $499.6 million, marking a 78% increase year-over-year and surpassing expectations by 17%. Advertising revenues also saw a significant rise of 84%, contributing to a gross profit of $453.7 million and a gross margin of 90.8%.
Furthermore, Reddit Inc’s operational efficiency is evident from its income from operations, which turned positive to $67.7 million from a loss in the previous year, and an adjusted EBITDA of $166.7 million, representing a 33.4% margin and a fourfold increase year-over-year. The company also provided strong guidance for the third quarter of 2025, with projected revenues between $535 million and $545 million and adjusted EBITDA expected to nearly double. These factors collectively underpin Laura Martin’s Buy rating for Reddit Inc Class A stock.
In another report released today, Citizens JMP also maintained a Buy rating on the stock with a $225.00 price target.