Reddit price target raised to $50 from $45 at Bernstein

Bernstein analyst Mark Shmulik raised the firm’s price target on Reddit (RDDT) to $50 from $45 and keeps an Underperform rating on the shares. The firm revises up its near-term estimates tied to the OpenAI partnership announced in May, which it expects to bring 500-800bps of revenue contribution starting in Q3. Q2 data continues to track well, with web traffic up 38% year-over-year in Q2, with Google (GOOGL) the primary source of traffic. The real test for Reddit should come in Q3, as the company laps Google’s algorithm changes affecting web traffic and ad dollars, Bernstein adds.