Argus Research Initiates Coverage on Reddit, Inc. (RDDT) With $250 PT; Deutsche Bank Raises PT to $205

With a strong EPS growth estimate for the next year and significant hedge fund interest, Reddit, Inc. (NYSE:RDDT) secures a spot on our list of the 15 Stocks That Will Benefit From AI.

Following a series of impressive upgrades, Reddit, Inc. (NYSE:RDDT) is garnering new momentum on Wall Street. After Reddit’s impressive second-quarter earnings, Deutsche Bank increased its price target to $205 from $180 on August 4, 2025, and reaffirmed its Buy rating. The platform reported a 21% increase in global DAUs to 110.4 million, roughly 70% year-over-year revenue growth, and 91% gross profit margins. July also showed ongoing net additions in the United States and international markets.

Despite challenges from Google, analysts attributed steady user growth to new publisher agreements and marketing techniques. On August 18, momentum increased even more when Argus Research began covering Reddit, Inc. (NYSE:RDDT) with a $250 target and a Buy rating, demonstrating their faith in the platform’s ability to deliver long-term growth.

Through interest-based forums, Reddit, Inc. (NYSE:RDDT) runs a global digital community platform that brings people together to participate in discussions, share content, and engage with a wide range of subjects, interests, and experiences—all of which promote learning and a sense of community. It is on our list of the Best AI Stocks.

While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.