Sat Jan 03 08:30:00 UTC 2026: ## Reddit Shares See Afternoon Surge on AI Optimism, Analysts Bullish

New York, NY – Shares of Reddit (NYSE:RDDT) experienced a surge in trading during the afternoon session, climbing as high as 4.3% before settling at $239.66, fueled by positive analyst commentary and increasing investor interest in the company’s potential within the artificial intelligence sector.

Several prominent investment firms, including Piper Sandler, Needham & Co., and Jefferies, have reiterated their “Buy” or equivalent ratings for the social media platform. Jefferies analysts, in particular, set a price target of $325, suggesting significant upside potential for the stock.

The optimism stems from the increasing reliance on AI-generated answers in online information seeking. Analysts believe Reddit’s vast library of user-generated content is becoming increasingly valuable as training data for these AI models. This could open up new revenue streams for the company through data licensing agreements, a factor some analysts believe is not yet fully reflected in the stock’s current valuation.

This positive sentiment is further supported by Reddit’s recent strong financial performance. The company reported a 400% year-over-year increase in earnings per share in its most recent quarter, alongside a revenue growth of nearly 68%.

“The market clearly sees the value in Reddit’s unique position within the AI landscape,” said one analyst, requesting anonymity. “While the stock remains volatile, the long-term potential for data licensing is undeniable.”

However, Reddit’s stock is known for its volatility. In the past year, it has seen 59 significant moves greater than 5%. While today’s pop is noteworthy, the market seems to view it as impactful but not fundamentally altering the overall perception of the business.

This recent positive momentum follows a smaller gain earlier this month when Reddit shares rose 3.4% on news of cooling inflation, sparking hopes for potential Federal Reserve interest rate cuts.

Despite the volatility, Reddit’s early investors are seeing strong returns. An investor who bought $1,000 worth of shares at the IPO in March 2024 would now be looking at an investment worth $4,751.

[Disclosure: The author has no positions in the aforementioned stock.]

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