Citi analyst Ronald Josey has reiterated their bullish stance on RDDT stock, giving a Buy rating on April 17.
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Ronald Josey has given his Buy rating due to a combination of factors that highlight Reddit Inc’s strong performance and growth potential. The company reported impressive first-quarter results, with a significant increase in advertising revenue and operating leverage. This growth was supported by a rebound in daily active users, driven by new features like Reddit Answers, which have attracted more users and advertisers to the platform.
Josey also noted the expansion of machine translation, which has boosted international user growth, and the increase in active advertisers, particularly in the midmarket segment. The introduction of innovative advertising solutions, such as dynamic product ads and ads in comments, further enhances Reddit’s revenue prospects. These developments, coupled with the company’s strong operating leverage, suggest a positive outlook for continued user and revenue growth, justifying the Buy rating.