Core Insights - Reddit's lawsuit reveals a network of start-ups that scrape Google's search results and sell this data to AI companies [1] Group 1 - The lawsuit highlights the existence of an ecosystem that capitalizes on Google's search data [1] - Start-ups involved in this ecosystem are focused on data aggregation for AI applications [1] - The practice raises questions about data ownership and the ethical implications of scraping [1]

Core Insights - The social site's growth in user engagement and licensing revenue is primarily driven by human-generated content, which is essential for maintaining its competitive edge [1] - The increasing presence of bots poses a significant threat to the sustainability of user growth and revenue generation [1] Group 1 - Human-generated content is crucial for user growth and licensing revenue [1] - The threat from bots could undermine the effectiveness of human-generated content [1]

Core Viewpoint - Raymond James raised its price target on Reddit (NYSE: RDDT) to $250 from $225 while maintaining a Strong Buy rating, resulting in a more than 6% increase in shares intra-day on Monday [1] Group 1: Revenue and Advertising Metrics - The updated analysis indicates a bull case for U.S. logged-in ARPU approaching $100, driven by higher ad load, stronger CPMs, and on-platform AI search that could increase query volume [1] - Agency checks revealed e-commerce campaigns with targeting clearing above $6 CPM, showing a triple-digit year-over-year increase, consistent with revised internal metrics suggesting about $4 CPM for generic campaigns compared to $2 previously [2] - Raymond James benchmarked Reddit's U.S. revenue per thousand impressions (RPM) at roughly $2 currently, with a bull case near $6, while the peer average is around $5 across platforms like Google, Meta, Pinterest, Snap, and Nextdoor [2] Group 2: Advertising Load and AI Search Potential - The model assumes home-feed ad load will rise from 13% (1-in-8) to 17% (1-in-7), which is still below many peers that could flex to 25%-50% [3] - For AI search, the firm projected queries increasing from 1.5 billion per month to 4 billion, with a 25% ad load, sub-1% click-through rate, and $1 cost-per-click, implying a roughly $350 million incremental revenue opportunity for currently unmonetized formats [3] Group 3: Market Sentiment - Analysts described the tactical setup as neutral into the print but argued that the risk/reward remains attractive at current levels [4]

Core Viewpoint - Morgan Stanley identifies Pinterest as a stock pick due to strong earnings revisions, indicating a favorable environment for stock selection amid rising stock-specific risks [1][2]. Group 1: Stock Selection Environment - Stock-specific risks have increased recently, creating a historically opportunistic environment for stock picking [1]. - Analysts' opinions on company earnings prospects are becoming more varied, contributing to a dispersion of earnings revision breadth [2]. Group 2: Earnings Revisions and Stock Performance - Research indicates that positive earnings revisions can lead to stock gains, with companies that exceed earnings expectations consistently outperforming those that fall short [3]. - Morgan Stanley's stock screen focuses on companies with strong earnings revision momentum, highlighting Pinterest, Reddit, Take-Two Interactive, Burlington Stores, and Carvana as top picks [4]. Group 3: Sector Updates - In the restaurant sector, pricing is restrained while promotional activity is high; the gaming and leisure sector, particularly cruises, is experiencing healthy demand [6]. - Analysts expect improvements in freight-related companies over the next six months [6]. - The technology sector shows continued strength in AI, with challenges in traditional storage and server capacities; within internet companies, agentic AI is gaining traction in e-commerce [6]. - In consumer finance, there is ongoing degradation at the low end of the market, but this trend is not spreading [6].

Core Insights - Reddit (RDDT) is experiencing significant user growth, with a 21% year-over-year increase in daily active users, reaching 110 million globally in Q2 2025, indicating potential for further business performance improvement [1][9] User Growth and Engagement - The platform's search functionality is crucial for user growth, with 70 million weekly users utilizing the core search product and Reddit Answers, an AI-powered tool, growing from 1 million to 6 million users in Q2 2025 [2] - International expansion is a key driver of user growth, with machine translation available in 23 languages, enhancing access for users in Asia, Europe, and Latin America [3] - New profile customization features rolled out in June 2025 allow users to curate their profiles, enhancing user engagement and satisfaction [4] Competitive Landscape - RDDT faces competition from Pinterest (PINS) and Snap (SNAP), both of which are expanding their advertising efforts in the digital ad market [5] - Pinterest reported an 11% year-over-year growth in global monthly active users, reaching 578 million, while Snapchat's daily active users increased by 8.6% year-over-year to 469 million [5][6] Financial Performance - RDDT shares have increased by 22.9% year to date, outperforming the broader Zacks Computer & Technology sector and the Internet - Software industry [7] - The forward 12-month Price/Sales ratio for RDDT is 14.36X, significantly higher than the sector's 6.83X, indicating potential overvaluation [10] - The consensus earnings estimate for 2025 is $1.87 per share, reflecting a 156.16% year-over-year growth [12]

Market Overview - The recent bull market on Wall Street has persisted for three years, primarily driven by the adoption of generative AI technology, with cyclical sectors like industrials, financials, consumer discretionary, and utilities also participating [1] - The bull run is expected to continue due to a resilient U.S. economy, declining inflation, solid earnings results, and the Fed's low-interest rate regime and accommodative monetary policies [2] DocuSign Inc. (DOCU) - DocuSign's strength is attributed to its subscription revenues, which have been the majority of its top line over the past three years, and efficient international growth from selling expenses [4][11] - The company has a strong focus on R&D, enhancing product offerings and customer experience, supported by partnerships with tech giants like Salesforce and Microsoft [5][11] - Expected revenue and earnings growth rates for the current year are 7.1% and 3.9%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [6] - DOCU is trading at a 37% discount from its 52-week high, with a short-term average price target indicating a potential increase of 37.3% from the last closing price of $67.91, suggesting a maximum upside of 82.6% [7] Reddit Inc. (RDDT) - Reddit is experiencing strong growth in user engagement, with rising daily and weekly active users, ARPU gains, and expanding advertiser tools [8] - AI-powered features like Reddit Answers, which has over six million weekly users, are enhancing content discovery and personalization [9] - Expected revenue and earnings growth rates for the current year are 58.6% and over 100%, respectively, with a 0.5% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [10] - RDDT is currently trading at a 40.9% discount from its 52-week high, with a short-term average price target indicating an increase of 11.8% from the last closing price of $200.76, suggesting a maximum upside of 49.4% [12] Fair Isaac Corp. (FICO) - Fair Isaac is benefiting from strong financial performance driven by growth in its Scores and Software segments, with new scoring models enhancing predictive accuracy [13][14] - The Software segment shows strength with increased adoption of SaaS and license revenues, indicating strong platform engagement [14] - Expected revenue and earnings growth rates for the current year are 19.6% and 30.7%, respectively, with a 0.1% improvement in the Zacks Consensus Estimate for earnings over the last 30 days [15] - FICO is trading at a 31.9% discount from its 52-week high, with a short-term average price target indicating a potential increase of 21.1% from the last closing price of $1,636.65, suggesting a maximum upside of 46.6% [16]

Core Insights - Reddit stock has experienced volatility, with a 12% decline this month despite recent analyst optimism regarding upcoming earnings and product developments [1][2][4] - Analyst Youssef Squali from Truist expects a strong Q3 earnings report, with results anticipated at the high end of expectations, and has raised the price target for Reddit stock from 225 to 260 [2][4] - The introduction of a unified search function and a generative AI-powered Answers feature is expected to enhance user engagement and drive growth in Reddit's advertising business [3][4] Financial Performance - Reddit stock has surged nearly 500% since its IPO in March 2024, but has seen a nearly 30% pullback from its record high of 282.95 on September 18 [5] - The stock's Relative Strength Rating remains strong at 97 out of a possible 99, indicating significant outperformance over the past year [7] User Engagement and Growth Potential - Reddit's core search product attracts 70 million weekly users, while the new AI-powered Answers feature has 6 million weekly active users, showing rapid growth potential [3] - Squali believes that Reddit's ability to leverage authentic human conversations will differentiate it in the search engine market, potentially driving new growth for its ad business [3][4] Market Dynamics - Concerns arose regarding a decrease in traffic from AI chatbots, particularly ChatGPT, but analysts, including Squali, argue that Reddit's citation rates in Google's AI overviews remain stable, suggesting continued traffic stability [6][7] - Google holds over 90% market share in search referral traffic, and Reddit is believed to generate most of its search referral traffic from Google [7]

Core Insights - Artisan Mid Cap Fund reported strong performance in Q3 2025, with returns of 8.80% for Investor Class and Advisor Class funds, and 8.83% for Institutional Class, significantly outperforming the Russell Midcap Growth Index's 2.78% return [1] - Reddit, Inc. (NYSE:RDDT) was highlighted as a key investment, showing a one-month return of -26.31% but a remarkable 154.14% increase over the past 52 weeks, with a market capitalization of $36.748 billion as of October 14, 2025 [2] Fund Performance - The Artisan Mid Cap Fund's strong performance was primarily driven by holdings in the health care sector [1] - The fund's top five holdings were noted as significant contributors to its success in 2025 [1] Reddit, Inc. Insights - Reddit's revenue grew by 78% year-over-year, reaching $500 million in Q2 2025, with an adjusted EBITDA margin of approximately 30%–33% [3][4] - The company is in the early stages of enhancing its advertising capabilities, indicating potential for further monetization of its user engagement [3] - Reddit is renegotiating data deals with large language model providers, which could provide additional profit opportunities [3] Hedge Fund Interest - As of the end of Q2 2025, 74 hedge fund portfolios held Reddit, Inc. shares, an increase from 72 in the previous quarter [4] - Despite its potential, some analysts suggest that certain AI stocks may offer greater upside with less risk compared to Reddit [4]

Photo Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty ImagesSOPA Images/LightRocket via Getty ImagesReddit (RDDT) stock has decreased by 26% over the last month and is now priced at $196.35. Our algorithmic multi-factor analysis indicates that it may be the right moment to acquire additional shares of RDDT stock. Overall, we maintain a positive outlook on the stock, and a target price of $258 seems achievable. We believe there is little to be concerned about in RDDT stock, thanks to its Very ...

Core Insights - Reddit Inc. has received an optimistic price target of $236 from Goldman Sachs, indicating a potential upside of 20.19% from its current stock price of $196.35 [1][5] Stock Performance - Reddit's stock closed at $203.68, reflecting a 2.58% increase from the previous close, outperforming major indices like the S&P 500 (1.56% increase) and the Dow (1.29% increase) [2][5] - Despite the recent performance, Reddit's shares have declined by 21.92% over the past month, underperforming the Computer and Technology sector's 1.06% increase and the S&P 500's 0.41% rise [2][5] Financial Expectations - Investors are anticipating Reddit's financial results on October 30, 2025, with an expected earnings per share (EPS) of $0.52, representing a 225% growth from the same quarter last year [3][5] - The Zacks Consensus Estimate projects Reddit's revenue to reach $549.69 million, a 57.8% increase from the previous year [3] Stock Metrics - Currently, Reddit's stock price is $196.35, down by 3.60% or $7.33, with trading fluctuations between a low of $194.83 and a high of $205.52 [4] - Over the past year, Reddit's stock has reached a high of $282.95 and a low of $73.59, with a market capitalization of approximately $36.75 billion [4]