Reddit Shares Rise 2% As Needham Lifts Price Target To $300 On GenAI Tailwinds

Needham raised its price target on Reddit (NYSE:RDDT) to $300 from $215 while keeping a Buy rating, sending shares up about 2% in intraday trading Monday.

The firm said it increased its FY25 and FY26 estimates and price target due to GenAI-driven benefits and rising labor productivity. Analysts highlighted three areas where Reddit stood to gain: Google's shift to displaying direct answers instead of links was pushing top publishers to seek inclusion in Reddit's search results to recapture lost traffic; the company was using GenAI-powered translations to accelerate the growth of its international communities, helping unlock new ad revenue opportunities; and Reddit was in negotiations with OpenAI and Google's Gemini to renew licensing agreements with more favorable terms than before.