10 Hot New Stocks to Buy Now

2. Reddit, Inc. (NYSE:RDDT)

6-Months Performance: 244.21%

Analyst Upside Potential: 12.07%

Number of Hedge Fund Holders: 87

Reddit, Inc. (NYSE:RDDT) operates the social media platform called Reddit. This platform is like a digital city where people can create communities and share content based on their interests.  The company started trading on the New York Stock Exchange on March 21, 2024, making it a hot new stock to buy now.

Advertisement revenue is one of the primary modes through which the company makes money. During the fiscal third quarter of 2024, Reddit, Inc. (NYSE:RDDT) generated $315.1 million from its advertisement segment, indicating a 56% increase year-over-year. On February 13, John Colantuoni from Jefferies maintained a Buy rating on the stock with a price target of $225. Colantuoni noted that Reddit, Inc. (NYSE:RDDT) has strong potential for revenue growth, especially through advertising. The company has demonstrated significant growth in advertising revenue and Advertising Revenue per Logged-in User (ARPU), exceeding expectations. The analyst expects the company to maintain revenue growth through continued innovation in advertising formats and targeting, as well as diversification of its advertiser base.