Reddit Inc. (NYSE: RDDT) shares are trading higher Tuesday, continuing momentum from Monday when the company announced two new AI-driven advertising tools aimed at enhancing its platform's appeal to brands. The rally also appears to be supported by recent institutional developments and broader optimism around Reddit's data strategy.
There are three stocks in the digital space that shouldn't be ignored by investors, representing some of the most popular factors in a volatile environment.
Shares of online community and discussion platform Reddit (NYSE:RDDT) jumped 5.1% in the morning session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. The Wall Street Journal said senior Iranian officials had signaled a willingness to restart stalled nuclear talks, on the condition that Washington refrain from joining Israel's ongoing strikes.
Reddit Inc. (NYSE: RDDT) shares are trading higher Monday following reports the company introduced two new AI-powered advertising tools intended to support brands in navigating the platform's complex user discussions.
Reddit’s AI tools, Reddit Insights, and Conversation Summary Add-ons, will help marketers analyze trends and boost ad engagement by featuring positive user comments.
Reddit is now the second most-cited source in Google's AI Overviews, but analysts warn that the resulting traffic—mostly from logged-out users—may do little to boost the company's ad revenue or profitability.
Reddit has gotten torched over the last six months - since December 2024, its stock price has dropped 34% to $117.51 per share. This might have investors contemplating their next move.
The stocks in this article have caught Wall Street’s attention in a big way, with price targets implying returns above 20%.
But investors should take these forecasts with a grain of salt because analysts typically say nice things about companies so their firms can win business in other product lines like M&A advisory.
