FMP
Reddit Price Target Raised to $197 Amid Strong User Growth and Monetization Potential
Jan 14, 2025 5:28 PM - Davit Kirakosyan
Image credit: FMP
Piper Sandler analysts raised their price target on Reddit (NYSE:RDDT) to $197 from $150, maintaining an Overweight rating on the stock. The revision reflects the platform’s promising growth trajectory, underpinned by increasing user engagement and monetization opportunities.
Recent data from Reddit’s Ads Manager indicates steady month-over-month growth in user numbers and stable to slightly declining cost-per-click metrics. This suggests a healthy expansion in user base and advertising inventory, setting the stage for robust monetization. According to the analysts, product innovations, including enhanced search functionality and the introduction of Answers, are expected to further drive engagement and advertiser interest.
The company’s guidance appears conservative, with projections for fourth-quarter revenue of $402 million, marking a 61% year-over-year increase, and EBITDA of $116 million.
Other Blogs
May 27, 2024 3:30 PM - Rajnish Katharotiya
The best 5 GPU stocks other than NVDA
In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...
Jun 6, 2024 2:47 AM - Parth Sanghvi
ROE vs ROA: Which Metric is More Important for Investors?
ROE vs. ROA: Which Metric is More Important for Investors? When evaluating a company's financial performance, investors often rely on various metrics to gauge profitability and efficiency. Two commonly discussed metrics are Return on Equity (ROE) and Return on Assets (ROA). Understanding the diff...
Jun 6, 2024 2:57 AM - Parth Sanghvi
DCF vs NPV: Which Valuation Method Should You Use?
When it comes to valuing an investment or a business, two of the most commonly used methods are Discounted Cash Flow (DCF) and Net Present Value (NPV). Both methods are essential tools in finance, but they serve slightly different purposes and are used in different contexts. This guide will explore ...
