12 Best Up and Coming Stocks to Buy According to Wall Street Analysts

4. Reddit Inc. (NYSE:RDDT)

Average Upside Potential as of March 21: 88.51%

Number of Hedge Fund Holders: 87

Reddit Inc. (NYSE:RDDT) enables users to engage in conversations, explore passions, research new hobbies, and exchange goods and services. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another.

The company is enhancing its advertising platform by integrating AI-powered tools, such as the AI Headline Generator and Memorable AI, to improve performance and attract mid-market and SMB advertisers. It’s also focusing on brand safety and using its unique community intelligence to develop advertising solutions like Reddit Pro Trends. The company is investing in ad stack automation and advertiser diversification.

In Q4 2024, Reddit Inc.’s (NYSE:RDDT) advertising revenue surged by 60% year-over-year and reached $395 million. For the full year 2024, advertising revenue drove total revenue to $1.3 billion, which was a 62% increase. International advertising revenue saw a 77% growth. This is attributed to the company’s ability to connect brands with engaged users seeking trustworthy opinions across various advertising objectives, channels, verticals, and geographies.

Reddit Inc.’s (NYSE:RDDT) strong quarterly earnings, user growth, and AI partnership news drove a stock surge, which made it a top performer for Columbia Threadneedle Global Technology Growth Strategy. The fund stated the following in its Q4 2024 investor letter:

“Reddit, Inc. (NYSE:RDDT) was the single best-performing stock for the fund, as the stock surged during the quarter, with significant outperformance following its stellar quarterly earnings release. The capital-light social news aggregation platform — and the ninth most-visited website in the world — reported quarterly revenue, user growth and profit margins that came in considerably higher than even the most bullish of estimates, and the company also provided forward-looking guidance that came in well ahead of expectations on most metrics. After earlier announcing a data licensing partnership with AI pioneer OpenAI, investors ‘up-voted’ the evolving AI narrative for Reddit after gaining a better understanding of its unique and hard-to-replicate trove of content generated by its growing and increasingly global user base.”