Reddit Stock Rises on AI Advertising, Analysts Upgrade Ratings

Reddit's stock (NYSE: RDDT) has shown notable volatility in 2025, with recent gains driven by the company's strategic focus on AI-powered advertising tools unveiled at the Cannes Lions Festival. These features, including Reddit Insights and Conversation Summary Add-Ons, aim to provide real-time trend analysis and authentic user engagement, enhancing the platform's appeal to advertisers targeting niche communities. Despite trading below its 52-week high and a year-to-date decline, Reddit has received mixed analyst ratings, with upgrades and buy ratings balanced by cautious price target adjustments. CEO Steve Huffman expresses confidence in Reddit's growth trajectory, even amid challenges like changes in Google's search algorithm. Prominent voices like Jim Cramer praise Reddit as a top digital advertising stock, highlighting its precise verticals and strong potential in the AI era. Market optimism has also been influenced by broader geopolitical developments, such as easing Middle East tensions, which contributed to recent rebounds in Reddit's stock price.