Reddit, Inc. (NYSE:RDDT) is one of the AI Stocks in Focus This Week. On December 1, Piper Sandler reiterated an “Overweight” rating on the stock with a price target of $290.00. The firm views Reddit as a strategic AI asset supported by licensing potential and ad revenue momentum.
Reddit has two primary Data Licensing (DL) agreements in place with Google and OpenAI. These DL agreements drive a significant portion of segment revenue, and are on track to reach an estimated $400million in revenue by 2027, surpassing both consensus & PSC expectations.
The firm likes the setup for Reddit heading into 2026, noting how the growing demand for training data in the AI landscape positions the company as a strategic asset.
The company’s advertising business, which the firm expects to grow an estimated 70% year-over-year in 2025 and mid-40% in 2026, also possesses “differentiated growth” compared to peers.
“Reiterate OW. We like the set-up for RDDT stock into ’26. The growth in AI continues to fuel the need for training surfaces, and we see RDDT as a strategic asset in this context. Similarly, we see RDDT’s ads businesses possessing differentiated growth (we project ~70% y/y growth for ads in ’25, mid-40% percent growth in ’26). Last, RDDT is coming out of difficult y/y user growth compares, and we expect stabilization in 4Q with potential upside to our 2026 forecasts.”
Reddit, Inc. (NYSE:RDDT) is a social media platform that leverages AI to strengthen search functionality and improve user engagement.
While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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