Needham analyst Laura Martin has maintained their bullish stance on RDDT stock, giving a Buy rating today.
Laura Martin’s rating is based on Reddit Inc’s impressive first-quarter performance in 2025, which showcased a significant year-over-year revenue growth of 61%, reaching $392.4 million. The company also experienced a substantial increase in advertising revenue, which rose by 61% to $359 million, and data licensing revenues grew by 56% to $34 million. Additionally, the daily active users increased by 31% to 108.1 million, indicating strong user engagement and growth.
Furthermore, the company’s average revenue per user saw a 23% year-over-year increase, and both logged-in and logged-out users grew by 23% and 38%, respectively. Reddit’s gross margin expanded by 190 basis points to 90.5%, reflecting improved operational efficiency. The introduction of new products like Reddit Search and Reddit Answers has enhanced user discovery and engagement, while AI-driven language translations are expected to boost international user growth. These factors collectively contribute to the positive outlook and justify the Buy rating.
In another report released today, Wells Fargo also maintained a Buy rating on the stock with a $168.00 price target.
Based on the recent corporate insider activity of 122 insiders, corporate insider sentiment is neutral on the stock.