Mark Mahaney, an analyst from Evercore ISI, has initiated a new Buy rating on Reddit Inc Class A (RDDT).
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Mark Mahaney has given his Buy rating due to a combination of factors that point to strong upside potential for Reddit’s stock. He believes the current valuation, while elevated on traditional metrics, is justified by Reddit’s exceptional projected revenue and EBITDA growth over the next several years, which he sees outpacing most peers in the digital advertising and social media space. His forecasts are above consensus, and he argues there is still meaningful room to increase revenue per user based on comparable platforms, recent product initiatives like R-Max, and positive feedback from advertising industry checks. In his view, Reddit’s high-intent, community-driven inventory supports a durable premium growth profile.
Mahaney also highlights strategic advantages that strengthen the Buy case. He contends Reddit is structurally well positioned in the AI ecosystem, as its massive archive of user-generated content is increasingly being monetized through high-margin data-licensing deals with large language model developers. Compared to other social platforms at similar stages post-IPO, he notes Reddit trades at a lower multiple, is already more profitable, and is growing revenue faster, reducing the risk of a sharp “cliff” in the stock’s performance. His proprietary user survey and advertiser discussions corroborate a highly engaged user base and a maturing ad platform that is becoming a staple for major brands, supporting his premium valuation and $320 price target.
In another report released on January 9, Argus Research also maintained a Buy rating on the stock with a $300.00 price target.