Reddit (NYSE:RDDT) Stock Price Target Increases to $250 Amid 71% Revenue Growth

Reddit, Inc. (NYSE:RDDT) has seen a remarkable surge in its stock price, gaining 31% over the past month and reporting a 71.3% year-on-year revenue increase to $427.7 million in Q4 CY2024. Analysts project strong future growth, with an estimated 34% annual growth over the next three years, significantly outpacing the industry average of 12%. The company has received a consensus rating of 'Moderate Buy' from analysts, with recent price target increases from firms like Raymond James, which raised its target from $200 to $250. Despite its high price-to-sales ratio of 33.9, market expectations for continued robust revenue growth appear to justify this valuation. Additionally, Reddit's operating margin improved to 12.4%, up from just 1.2% a year prior, indicating enhanced profitability. Overall, Reddit's performance and outlook suggest a solid position in the rapidly evolving online advertising landscape.