Mon Oct 20 14:20:00 UTC 2025: Okay, here’s a summary of the text and a rewritten version as a news article:

Summary:

Reddit stock (RDDT) is showing signs of recovery after recent dips, buoyed by positive analyst sentiment. Truist analyst Youssef Squali reiterated a “buy” rating and increased his price target, citing potential for strong Q3 earnings, a unified search function, and the growth of its AI-powered “Answers” feature. He also downplays concerns about reduced ChatGPT citations, noting that Google remains Reddit’s primary source of search traffic. Despite recent volatility, Reddit’s long-term performance remains strong, driven by its ad business and data licensing deals.

News Article:

Reddit Stock Gets a Boost from Analyst Optimism Despite AI Concerns

NEW YORK, NY – October 3, 2025 – Shares of Reddit (RDDT) climbed on Wednesday as analysts reaffirmed their positive outlook on the social media platform, despite lingering concerns about the impact of artificial intelligence (AI) on traffic.

Truist analyst Youssef Squali reiterated a “buy” rating for Reddit, raising his price target to $260 from $225. Squali pointed to several potential catalysts for growth, including a strong third-quarter earnings report expected on October 30th, a unified search function being rolled out, and the increasing popularity of Reddit’s generative AI-powered “Answers” feature. The “Answers” feature has 6 million weekly active users as of June 30th, which have been growing quickly this year but still remain a fraction of the company’s ‘hundreds of millions’ of total weekly users.

“We believe Reddit’s unified search product stands to be a notable beneficiary” of the continued expansion of gen AI search, Squali wrote in a note to clients. He emphasized Reddit’s unique strength in leveraging authentic, human conversations.

The analyst also addressed recent concerns about ChatGPT citing Reddit user posts less frequently in its responses. Squali argued that this is a minor issue, as Google remains the dominant source of search referral traffic for Reddit. He cited data indicating consistent citation rates within Google’s AI overviews and AI Mode searches.

Reddit’s stock has experienced significant growth since its IPO in March 2024, fueled by a rapidly expanding ad business and deals to license data to AI developers. However, the stock has also faced volatility, pulling back nearly 30% from a record high in September amid questions about its ability to maintain user growth as Google incorporates more AI into its search engine.

Despite the recent dips, Reddit’s overall performance remains strong, with a Relative Strength Rating of 97 out of a possible 99, reflecting its outperformance over the past year. Squali also believes the company has a significant growth opportunity in international markets.

As of recent trading, Reddit stock was up more than 2% at $200.90. Investors will be watching closely for the Q3 earnings report later this month to see if the company can maintain its momentum.

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