Laura Martin, an analyst from Needham, maintained the Buy rating on Reddit Inc Class A. The associated price target remains the same with $300.00.
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Laura Martin has given his Buy rating due to a combination of factors that collectively position Reddit as a high-conviction idea for 2026. She highlights Reddit’s fully human-generated content as a unique strategic asset that enhances trust, authenticity, and value for large language model partners, already producing substantial licensing revenue with meaningful upside from additional AI customers. Martin also points to Reddit’s initiatives to streamline new-user onboarding, which she expects will accelerate user growth and expand the platform’s reach.
Furthermore, she underscores product enhancements—such as improved search and answer capabilities and the rollout of Reddit Max—as catalysts for higher engagement, reduced churn, a larger addressable market, and better margins. The build-out of performance advertising tools gives Reddit a true full-funnel ad offering, supporting greater advertiser spend and mix shift toward higher-yield formats. Finally, Martin emphasizes Reddit’s exceptional top-line trajectory, projecting roughly 64% revenue growth in FY25 and close to 40% in FY26, making it the fastest-growing name in her coverage universe and justifying a Buy rating and inclusion on Needham’s conviction list.
According to TipRanks, Martin is a 5-star analyst with an average return of 9.3% and a 51.50% success rate. Martin covers the Communication Services sector, focusing on stocks such as Netflix, Trade Desk, and Roku.
In another report released on December 11, Jefferies also maintained a Buy rating on the stock with a $325.00 price target.