Rddt Stock Up Sentiment Remains Positive

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Rddt Stock Up Sentiment Remains Positive

Reddit (Rddt) Stock Up By 4%, Sentiment Remains Positive

Reddit (RDDT), the latest addition to the US tech stocks category, gained an upside of 3.9% on Friday. This bullish momentum sent the Reddit (RDDT) stock towards a $47.58 price level & was mainly fueled by the NFP report.

The report showed that the actual jobs generated for the month were 303K while the market was only forecasting 200K. So, from every angle, the NFP report was a success and highlighted the resilience of the labor market once again.

Reddit (Rddt) Ends The Week In Red

The NFP report led to gains in most of the tech stocks, including the magnificent seven. However, real estate companies and bank stocks were down, as there's still a good chance of rate cuts in June/July.

While Reddit's (RDDT) stock gained on Friday, its weekly closing price was still down by 3.6%. It appears that the looses incurred during Mon, Wed, and Thurs were a little too much!

Meanwhile, Baird gave a neutral rating to Reddit's (RDDT) stock and set a price target of $50. According to Baird, the valuation of Reddit (RDDT) is already very rich when compared with its IPO price of $34.

The analysts at Baird added that Reddit offers a lot of value for potential advertisers due to its massive amounts of user-generated content and rising user base.

As of now, Reddit boasts around 367 million unique users on a weekly basis, with a 27% user growth rate on an annual basis.

Another thing that hints at more upside in the Reddit (RDDT) stock is that the company will soon receive a license to train AI models.

Given all of that, Reddit's (RDDT) stock will likely gain in the near term as it is also joining the AI bandwagon. Reddit (RDDT)'s inclusion into the AI race will allow it to generate more sustainable revenue & even improve its user base.

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