On March 21, 2024, Reddit CEO Steve Huffman stood on the floor of the New York Stock Exchange (NYSE) and struck the bell for the NYSE’s initial public offering (IPO). stock price, pricing its shares at $47.
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Reddit Shares of Raymond James rose more than 7% to hit a record high on Tuesday after analysts at Raymond James raised their price targets and reiterated a “strong buy” rating on the social media platform.
The company’s shares hit $191 in midday trading, surpassing the all-time high of $182 set on Jan. 6. Third quarter financial results That beat Wall Street expectations.
Analysts at Raymond James said in a report on Tuesday that they would raise their price target on Reddit to $200 from $150, largely due to their “strong belief” that Reddit can expand its business into international markets.
Reddit Chief Operating Officer Jen Wong told CNBC in November that the company plans to attract more users outside its core U.S. market to expand its advertising business. Reddit’s Q3 sales were dominated by online advertisingan annual increase of 68% to US$348.4 million.
Reddit’s increasing use of artificial intelligence to automatically translate its site’s text into languages as diverse as Portuguese, French, Spanish, Filipino and German “should help,” analysts at Raymond James wrote. To improve Reddit’s local search rankings and achieve sustained and rapid growth.”
Wong told CNBC in November that the company’s AI translation efforts are key to its international expansion. The fastest-growing regions for Reddit users include the United Kingdom, the Philippines, India and Brazil, she said.
“This shows that a lot of our future user growth opportunities are definitely outside the U.S. and local languages,” Huang said. “Every language is another Reddit opportunity.”
Analysts at Raymond James, citing SimilarWeb Research, said the company remains one of the top five sites by search volume. Analysts wrote that Reddit’s “authentic and uniquely moderated (social system) content” will help the company dominate search results, ultimately leading to more Reddit users creating accounts.
Reddit makes more money from logged-in users who have accounts than from non-logged-in users, who have lost out in the past due to internal site improvements and previous changes to Google’s search algorithm that favored “real” content. Visit the platform more frequently throughout the year.
In a section on “risks,” Raymond James analysts noted that Reddit could be affected by “adverse Google search algorithm updates,” pushing Site ranks lower in search results It’s also slower to convert those logged-off users into more financially profitable logged-in users.
watch: Steven Mnuchin on TikTok: We are very interested in investing in this business
