12 AI News and Ratings Investors Are Watching Right Now

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10. Reddit, Inc. (NYSE:RDDT)

Number of Hedge Fund Holders: 52

Reddit, Inc. (NYSE:RDDT) uses AI to strengthen search functionality and improve user engagement by recommending relevant content and discussions. The company is also advancing its AI efforts with a new chatbot aimed at improving information retrieval and driving traffic back to its platform.

Citi analyst Ronald Josey raised Reddit’s price target to $200 from $120, maintaining a Buy rating. The increase reflects strong advertiser interest, rising engagement, and the success of new products like Reddit Answers. Citi highlighted Reddit’s expanding user base and product launches as key drivers of engagement growth. Advertiser discussions indicate increasing demand due to Reddit’s scale, with potential for more ad spending as tools like Search, Video, Dynamic Product Ads, and campaign automation gain traction. The analyst commented:

“On monetization, our conversations with advertisers suggest growing demand given Reddit’s user scale, and we believe there are multiple avenues for incremental ad spend as newer ad products like Search, Video, Dynamic Product Ads, and its planned end-to-end campaign automation tools launch and gain scale. Although our EBITDA projections go up materially, Reddit is investing across sales, search, AI/ML, and engineers. Reddit is one of our top SMID cap picks for 2025, and we reiterate our Buy rating.”

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