Piper Sandler Raises Reddit (RDDT) PT to $290, Demonstrates Strong Ad Growth

Reddit Inc. (NYSE:RDDT) is one of the best new stocks to buy right now. On September 18, Piper Sandler raised the firm’s price target on Reddit to $290 from $210, while keeping an Overweight rating on the shares following positive Ad Metrics checks. Earlier in Q2 2025, Reddit reported strong financial performance, significantly beating analyst expectations with a diluted EPS of $0.45, compared to the expected $0.20.

Total revenue grew 78% year-over-year to $500 million, which marked the fastest quarterly growth rate since 2022. This growth was driven by a powerful advertising segment, which saw revenue increase by 84% to $465 million. Other revenue, which includes the data licensing business, reached $35 million, up 24%. The Average Revenue Per User grew 47% to $4.53.

The revenue growth was also robust regionally, with the US growing 79% and international markets growing 71%. User and product metrics also showed notable growth and traction. Daily Active Users grew 21% to 110 million, with growth in both the US and international markets. The company’s unique value proposition was highlighted by its status as the #1 most cited domain for AI across all models, validating the essential role of human conversation for LLM and AI search engine training.

Reddit Inc. (NYSE:RDDT) operates a digital community in the US and internationally. The company’s platform enables users to engage in conversations, explore passions, and exchange goods & services.

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. This article is originally published at Insider Monkey.