Reddit (RDDT) Stock

A number of favorable analyst recommendations helped boost Reddit's (RDDT 7.13%) share price significantly in the last month of 2024. In December, the social media platform's stock increased by over 16%, enhancing its reputation as one of the top performers of the year.

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Reddit Inc. (RDDT) has experienced a surge of optimism, with its stock price increasing by more than 125% in the last six months. Although there has been a slight 10% drop in the past month, the strong technical and fundamental signs still indicate a positive outlook.

At the end of the last trading day, Reddit Inc. (RDDT) was priced at $165.91, which represents a 1.51% increase compared to the previous day.

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Reddit has a special and active group of users, along with genuine content, which helps it grow and draw in advertisers, making it a strong player in social media. Its advanced advertising technology and strategies, like dynamic product ads and CAPI integration, improve its capacity to increase ad revenue. Additionally, expanding internationally and licensing data, with important agreements already established, offer great opportunities for growth.

I still have a positive outlook on Reddit, setting a price target of $205, as its revenue from advertising and data licensing keeps growing, and profitability is increasing. In the third quarter, Reddit's daily active users rose by 47% compared to last year, thanks to investments in machine learning and expanding internationally, while enhancing the search experience is now a major focus. Additionally, Reddit is developing better advertising solutions to improve returns on ad spending, with advertising revenue increasing by 56% year over year.

In 2024, Reddit (RDDT) experienced an impressive year, with its stock price rising by 250% since its first-day close after being listed in March. This remarkable growth has made the 19-year-old social media platform very popular among Wall Street investors.

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