META Jul 2024 330.000 call

Here's why Reddit has more room to grow: Analyst

Shares of Reddit (RDDT) are up almost 25% since its IPO debut in March. Needham & Company senior entertainment and internet analyst Laura Martin raised her price target for the company from $63 to $75, citing its new AI deal and more. Martin joins Catalysts to give insight into her call and explain her belief that the social media company has more room to grow. Martin argues Reddit will gain even more from future deals with other tech companies: "So the margins here are 90% when they do one of these licensing deals and they already have a $200 million deal with Google (GOOG, GOOGL) ... And then they just got another $200 million deal from OpenAI, Sam Altman's company that Microsoft (MSFT) is the big investor in. I expect all the Amazon (AMZN) large language models and the Meta (META) large language models to also license the Reddit conversations to keep up with changing English real quickly." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino