Piper Sandler Reaffirms Reddit as Strategic AI Asset as Cramer Calls Shares Undervalued

Analysts highlight data licensing with OpenAI and Google as a growing revenue stream alongside accelerating ads.

Overview

Piper Sandler on December 1 reiterated an Overweight rating on Reddit with a $290 price target, emphasizing its value for AI training data.
The firm says licensing agreements with OpenAI and Google are building momentum and could total about $400 million in revenue by 2027.
Piper Sandler projects Reddit’s advertising revenue to grow roughly 70% in 2025 and in the mid‑40% range in 2026.
On CNBC’s Mad Money, Jim Cramer said the stock is undervalued, pointing to near‑70% revenue growth, a 91% gross margin and a 40% adjusted EBITDA margin.
Bullish theses also cite low recent capital spending and international expansion into markets such as India, Brazil and the Philippines as key drivers.