Reddit’s (RDDT) AI Search Push and Ad Momentum Support Bullish Wall Street View

Reddit’s (RDDT) AI Search Push and Ad Momentum Support Bullish Wall Street View Ghazal Ahmed Mon, June 8, 2026 at 3:08 PM GMT+2 1 min read RDDT QCOM MSFT Reddit, Inc. (NYSE:RDDT) is one of the 14 AI Stocks Making Headlines on Wall Street: Qualcomm, Microsoft, and More . On June 2, Citizens analyst Andrew Boone reiterated a Market Outperform rating on Reddit, Inc.

(NYSE: RDDT ) with a $240. 00 price target. Boone has particularly defended Reddit’s premium valuation, stating how the company boasts major drivers driving near-term outperformance.

Reddit last closed at $177. 85, which implies shares trade for 16. 5x our 2027E EBITDA of $2.

0B and 25. 4x our 2027E GAAP EPS of $7. 01.

We maintain our Market Outperform rating. Our $240 price target is based on ~34x our 2027E GAAP EPS of $7. 01.

From its significant ad momentum to new product launches such as Reddit Shopping and Max, many factors justify the stock’s valuation. The firm also noted how Reddit Answers, an AI-powered search tool on Reddit, has been modernizing the search experience for its users. Reddit’s (RDDT) AI Search Push and Ad Momentum Support Bullish Wall Street View one photo/Shutterstock.

com The firm believes that Reddit will continue to materially outperform estimates near-term. 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 . READ NEXT:  33 Stocks That Should Double in 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy .

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