Can Reddit (RDDT) Sustain Its Momentum? Needham Thinks So

Reddit, Inc. (NYSE:RDDT) is 1 of the 10 Trending AI Stocks According to Analysts. Reddit has precocious emerged arsenic Needham’s Top Pick for 2026. On February 9, the firm’s expert Laura Martin reiterated a Buy standing connected the banal with a $300.00 terms target. RDDT’s Top Pick ranking is supported by execution excellence, accelerated borderline expansion, and heavy assemblage moat.

The institution reported its fourth-quarter 2025 fiscal results past week, posting revenues of $725.6 cardinal for Q4 2025, a 70% year-over-year summation and beating Needham’s estimation by 9%.

Its adjusted EBITDA reached $327 million, up 112% year-over-year and 16% supra analyst’s expectations. Non-GAAP net per stock came successful astatine $1.72, a 99% year-over-year summation and exceeding the firm’s estimation by 18%.

The 70% emergence successful revenues, the steadfast highlighted, were driven by 75% year-over-year advertisement gross growth, with mean gross per idiosyncratic (ARPU) up 44% and idiosyncratic maturation of 18%.

It has highlighted Reddit arsenic its apical prime for 2026 based connected the platform’s strategical presumption with “100% human-created content.” This is simply a origin that becomes much invaluable and differentiated arsenic AI connection models proliferate.

Needham besides acknowledged Reddit’s “execution excellence” with implicit 60% gross maturation for the past six quarters.

“Our Take RDDT is our apical prime for 2026, based on: Strategic presumption with 100% human-created content, which becomes much differentiated and invaluable arsenic LLM bots multiply; Execution excellence, with >60% rev maturation for the past 6 quarters, advertisement revs up 75% successful 4Q25, optionality upside from LLM licensing revs and accelerated borderline expansion, and, Difficulty successful replicating a quality assemblage similar RDDT today, creates a heavy moat.”

Reddit, Inc. (NYSE:RDDT) is simply a societal media level that leverages AI to fortify hunt functionality and amended idiosyncratic engagement.

While we admit the imaginable of RDDT arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you’re looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double successful 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This nonfiction is primitively published at Insider Monkey.