We recently published a list of 10 Stocks Bolstered by Broader Market Cheer. In this article, we are going to take a look at where Reddit Inc. (NYSE:RDDT) stands against other stocks that bolstered by broader market cheer.
The stock market bounced back from hefty losses on Wednesday, with all Wall Street indices finishing in the green territory after President Donald Trump announced that the US would pause the imposition of higher tariffs on 75 countries for 90 days.
In a post on Truth Social, Trump said that more than 75 countries have called to negotiate and have not retaliated in any way.
“I have authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” he noted.
Following the announcement, the Dow Jones jumped by 7.87 percent, the S&P 500 surged by 9.52 percent, and the tech-heavy Nasdaq soared by 12.16 percent.
Indices aside, 10 companies led the charge, predominantly those with a high international trade exposure.
In this article, we listed Wednesday’s 10 best-performing stocks and detailed the reasons behind their gains.
To come up with the list, we considered only the stocks with $2 billion market capitalization and $5 million in trading volume.
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Reddit Inc. (NYSE:RDDT)
Reddit saw its share prices increase by 24.72 percent on Wednesday to end at $110.86 apiece amid the overall market optimism coupled with an analyst’s optimistic outlook on the company, saying it has the potential to grow further.
In its market note, Truist gave RDDT a Buy rating and a price target of $150, representing a 35-percent upside from its latest closing price.
According to the analyst, the upgrade was based on the company’s rapid growth trajectory, margin expansion potential, and differentiated position in the digital advertising sector.
Over the next two years, Truist expects RDDT to nearly double its revenues to $2.9 billion, supported by gains in its digital advertisements and monetization tailwinds.
Last year, RDDT was able to post a full-year revenue of $1.3 billion, representing less than 1 percent of the global digital ad market.
Meanwhile, RDDT earned a more pessimistic outlook from Bank of America after earning a Neutral rating and a lower price target of $110 from the $190 previously.
Another investment firm, Baird, also reduced its price target for RDDT to $125 from $185 previously, while maintaining its Neutral rating.
Overall, RDDT ranks 8th on our list of stocks that bolstered by broader market cheer. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
