Reddit Inc Class A, the Communication Services sector company, was revisited by a Wall Street analyst yesterday. Analyst Ronald Josey from Citi maintained a Buy rating on the stock and has a $250.00 price target.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Reddit Inc’s strong financial performance and growth potential. The company reported impressive third-quarter results, surpassing expectations across key metrics such as daily active users, revenue, and adjusted EBITDA. Specifically, Reddit’s daily active users increased by 19% year-over-year, while revenue grew by 68%, significantly exceeding consensus estimates. The company’s advertising revenue also showed robust growth, with a 74% year-over-year increase, indicating strong demand for advertising on the platform.
Furthermore, Reddit’s guidance for the fourth quarter suggests continued strength, with revenue projections above consensus and an expected expansion in adjusted EBITDA. The company’s strategic focus on enhancing user engagement through app and homepage improvements, along with investments in new ad products and automation, positions it well for future growth. Additionally, Reddit’s data licensing partnerships provide strategic value and potential for further monetization. These factors collectively support Ronald Josey’s positive outlook and Buy rating for Reddit Inc Class A stock.
According to TipRanks, Josey is a 5-star analyst with an average return of 22.6% and a 58.14% success rate. Josey covers the Communication Services sector, focusing on stocks such as Alphabet Class A, Meta Platforms, and Zillow Group Class A.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $250.00 price target.