Why Reddit Inc. (RDDT) Went Up On Friday?

We recently published a list of 10 Stocks Lead Friday’s Charge. In this article, we are going to take a look at where Reddit Inc. (NYSE:RDDT) stands against other stocks that lead Friday’s charge.

The stock market finished in the green territory on Friday, albeit muted trading persisted over the lack of catalysts to fuel investing appetite.

The tech-heavy Nasdaq led gains among Wall Street’s benchmark indices, finishing up by 0.52 percent. Meanwhile, both the Dow Jones and S&P 500 ended the week eking out 0.08-percent gains.

Ten companies mirrored the broader market optimism, finishing the week with modest gains. In this article, we have identified today’s top performers and detailed the reasons behind their gains.

To come up with the list, we considered only the stocks with $2 billion in market capitalization and $5 million in trading volume.

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Reddit Inc. (NYSE:RDDT)

Reddit shares rose by 6.39 percent on Friday to finish at $115.7 each as investors cheered news of a positive rating and outlook for the company.

On Friday, analysts from Needham maintained their buy rating and $220 price target for RDDT despite the stock’s significant decline in the prior trading day following comments from Redburn analysts saying that its sustainability is a “gift” from Google.

Google made changes to its algorithm that led RDDT to nearly double its size in the past 18 months. However, Redburn believed that most of its users looking for answers to specific questions do not convert to RDDT log-in users, who are ultimately much more valuable.

“There is clear evidence that the boost to traffic and visibility from these changes is hitting a ceiling,” the analysts said, adding that “what Google giveth, it will taketh away.”

Overall, RDDT ranks 7th on our list of stocks that lead Friday’s charge. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as RDDT but trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.