Cantor Fitzgerald Assumes Coverage of Reddit (RDDT), Highlights the Company's 120M Daily Users

Reddit Inc. (NYSE:RDDT) ranks among the 10 best new stocks to buy in Ray Dalio’s portfolio. On January 8, Cantor Fitzgerald began coverage of Reddit Inc. (NYSE:RDDT) with a Neutral rating and a $240 price target. The firm emphasized Reddit’s solid standing as a prominent digital media platform, with around 120 million daily active users, which includes over 50 million logged-in users who spend between 20 and 45 minutes on the platform each day.

According to analyst Deepak Mathivanan, Reddit’s “differentiated consumer value proposition, strong network effects, and highly valuable content corpus for the AI era,” along with its runway for enhanced monetization presents a key revenue growth driver over the next few years.

Meanwhile, Piper Sandler reaffirmed an Overweight rating on Reddit Inc. (NYSE:RDDT) and set a $290 price target on the company’s shares, citing strong upside potential from the company’s data licensing segment. The firm believes Reddit’s data licensing deals with Google and OpenAI are just scratching the surface, and that this section may generate $400 million in revenue by 2027.

Reddit Inc. (NYSE:RDDT) runs a digital community where users may join and establish communities of their choice, as well as engage with others who share similar interests.

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.