Reddit’s Revenue Likely to Double by 2027, Gets $150 PT

Truist Securities has initiated a ‘Buy’ rating for Reddit Inc. (NASDAQ: RDDT), citing its significant growth in digital advertising and user engagement. The firm has set a price target of $150, driven by Reddit’s expanding user base and innovative advertising strategies.

Analyst Initiates Bullish Coverage on Reddit, Expects Revenue to 2x by 2027

Truist Securities has taken a bullish stance on Reddit Inc., initiating coverage with a ‘Buy’ rating and a price target of $150. This decision is primarily influenced by Reddit’s rapid expansion in the digital advertising domain and its substantial user growth.

Reddit’s daily active users surged by 39% year-over-year, reaching 102 million by the end of 2024, with ambitious plans to expand to 1 billion globally. The company’s revenue, which was $1.3 billion in FY24, is projected to nearly double by 2027, driven by gains in digital ad share and enhanced monetization strategies.

Key factors such as Reddit’s context-driven ad model and emerging AI capabilities are anticipated to play a pivotal role in its revenue growth.

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RDDT Stock Brief

Reddit’s stock has experienced notable fluctuations, reflecting both investor optimism and broader market uncertainties. On April 7, 2025, the stock opened at $81.01 and reached a high of $97.0, with a current price of $90.371. This movement is part of a broader trend observed since its IPO in March, where shares have surged due to confidence in Reddit’s advertising scalability and user engagement.

Despite these gains, the stock’s 52-week high of $230.41 contrasts sharply with its 52-week low of $37.35, indicating significant volatility. Key metrics such as a market cap of over $16 billion and a forward P/E ratio of 134.88 highlight the market’s high expectations for Reddit’s future performance.

However, potential risks include regulatory changes, macroeconomic factors, and increasing competition, which could impact Reddit’s growth trajectory.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.