Reddit stock rises after-hours on talk of new ad import feature from Meta

Published 28/01/2025, 23:26
© Reuters.

Investing.com -- Reddit shares gained 3.5% after-hours Tuesday following Piper Sandler’s recognition of a new feature that streamlines ad campaign imports from Meta Platforms Inc (NASDAQ:META).’s ads manager. The brokerage firm sees the update as a potential catalyst for attracting more advertisers to Reddit’s platform.

Piper Sandler analyst Thomas Champion highlighted the feature in a research note, suggesting it might become a focal point during Reddit’s upcoming earnings call. Champion’s note underscores the ease with which marketers can now transition their advertising efforts to Reddit, potentially expanding the company’s advertising base.

The optimism surrounding this new feature is reflected in Reddit’s postmarket performance, where shares climbed 2.9%. This follows a robust trading session on Tuesday, where Reddit’s stock closed up 7.7%. The company’s positive movement in the stock market is further bolstered by Piper Sandler’s Overweight rating and a price target of $197 for Reddit.

The introduction of the new ad import feature by Reddit is a strategic move to enhance its competitiveness in the digital advertising space, where Meta Platforms has been a dominant player. By simplifying the process for marketers, Reddit is positioning itself as a more accessible platform for advertising campaigns. This could lead to increased revenue streams and a stronger position in the market.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.