How is Reddit leveraging AI to drive its growth?

Reddit is using AI to accelerate global user growth through new translation features, and the platform is also beginning to monetize generative AI effectively through its Reddit Insights feature.

What new features has Reddit launched recently?

Reddit has launched Reddit Search and Reddit Answers, which are helping to deepen user engagement and improve content discovery on the platform.

Home / Business and Economy / Reddit Soars as Hedge Funds Bet Big on Its Future

Reddit Soars as Hedge Funds Bet Big on Its Future

29 Jul

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Summary

Needham analyst raises Reddit's price target to $165
Reddit's latest quarter exceeds expectations, momentum continues
AI plays growing role in Reddit's global expansion and monetization

Reddit Soars as Hedge Funds Bet Big on Its Future

Reddit, the social media platform based in San Francisco, has emerged as one of the best multibagger stocks according to hedge funds. On July 23, 2025, Needham analyst Laura Martin raised her price target on Reddit from $145 to $165, while maintaining a "Buy" rating.

Reddit's latest quarter came in ahead of expectations, and the momentum looks set to continue. The company is seeing a steady climb in daily active users, and its ad revenue, particularly from direct-response formats, is gaining traction. Reddit's pivot toward full-funnel advertisers, coupled with the launches of Reddit Search and Reddit Answers, is deepening user engagement and improving content discovery on the platform.

Financially, Reddit is benefiting from expanding margins and accelerating free cash flow. Additionally, the company is leveraging AI to drive its growth. New translation features aim to accelerate global user growth, and early results from Reddit Insights suggest the platform is beginning to monetize generative AI effectively.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.