The post Analyst revises Reddit stock price amid stronger ad metrics and growth outlook appeared on BitcoinEthereumNews.com.

Reddit (NYSE: RDDT) has faced considerable volatility since its IPO in March 2024, fueled by its “meme stock” status. However, it has recently surged nearly 240% year-to-date, capturing significant investor attention. The stock has captured the spotlight once again after Piper Sandler analyst Thomas Champion raised the company’s price target from $115 to $150, driven by robust advertising metrics and accelerating user growth in October. Notably, Reddit’s stock has already surpassed the updated price target, closing at $158.02 on November 21.  At press time, the stock continues to trade at $158.02, boasting a 15% gain in just one day and an impressive 104% rally over the past month. However, in after-hours trading, the stock dipped to $149. Reddit five-day stock price. Source: Finbold Robust user growth but sustainability in question Reddit’s upward momentum has been fueled by impressive user growth. Earlier this week, Thomas Champion, a Piper Sandler analyst, raised Reddit’s price target to $150 from $115, maintaining an Overweight rating.  The upgrade reflects October’s accelerating monthly active user growth of 3.5%, up from 1% in September, and a remarkable 47% year-over-year surge in daily active users, which reached 97 million last quarter. The analyst highlighted Reddit’s organic user acquisition trends, driven by the platform’s prominence in Google search results. CEO Steve Huffman revealed that Reddit ranks as the sixth most Googled phrase in the U.S. this year, further underscoring the platform’s growing appeal. However, recent changes by Google (NASDAQ: GOOGL) to monetize searches for “Reddit” by placing paid links above organic results could impact the platform’s user acquisition funnel.  While this poses a potential risk, Piper Sandler noted no immediate impact on Reddit’s metrics, affirming confidence in its organic growth engine. The firm raised its fiscal 2025 revenue forecast by 5% to $1.75 billion, driven by a projected 9%…

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Filed under: News - @ November 22, 2024 3:21 pm