An analyst from the Wall Street financial giant morgan stanley admitted that he missed out on the huge investment returns after the initial public offering. $Reddit (RDDT.US)$ However, in his latest research report, he believes that "there is still plenty of time to get on the ship." morgan stanley unexpectedly raised its rating on Reddit stocks, which are dubbed "the American version of Baidu Tieba," from "hold" to "shareholding," and raised the target price to as high as $200 within 12 months, upgrading it from Wall Street's lowest to the highest target price. morgan stanley's sudden shift in position regarding Reddit caught market participants by surprise.

Today, as the US stock market opened, Reddit briefly surged over 10%, with its stock price reaching a new high since its listing!

Since the coverage began in April, analyst Brian Nowak from morgan stanley has maintained a cautious 'hold' position on this social media company; however, in his latest report, he unexpectedly upgraded his rating for the stock to 'shareholding', aligning morgan stanley's stock rating for Reddit with that of most of Wall Street counterparts.

For the bullish market participants regarding Reddit, the most significant news is undoubtedly that the morgan stanley analyst Nowak has also substantially raised his 12-month target price for Reddit from the lowest target price on Wall Street to the highest, nearly quadrupling it.

In this bullish research report, Nowak wrote: 'Our pessimistic stance on Reddit has been wrong so far this year.' 'However, as we look ahead to 2025, we believe we have not completely missed out on this scaled platform rapidly rolling out a range of user interaction models and new advertising plans.'

Nowak, who has long been bearish on Reddit, set the latest target price for Reddit at $200, indicating a 23% potential increase from last Friday's historical closing high. As of last Friday's U.S. stock market close, Reddit's stock price was $162.76. In terms of stock performance, since the stock landed on the U.S. market at $34 per share in March, it has cumulatively risen nearly 380%. The analyst also stated that adopting a cautious wait-and-see attitude when the stock price soared after the IPO was completely 'wrong'.

Statistics show that the social media company Reddit had its best monthly performance in October, with a rise of up to 81%, as both Reddit's performance and outlook significantly exceeded expectations, indicating that its investments in advertising technology are yielding positive returns. Additionally, Reddit's large-scale, high-value user-generated content provides a rich data source for training large language models for leaders in the AI field, such as Google and OpenAI, which is also a key source of the company's performance growth.

Reddit has significantly improved its profitability by diversifying its business revenue sources (such as ai training data licenses and advertising business) and user growth. Additionally, various generative ai applications on the Reddit platform have not only greatly enhanced the experience and loyalty of Reddit users but also opened up new revenue channels, significantly strengthening the company's fundamental stability.

Novak also stated in the research reports that despite this, in terms of the company's significant increase in users, the time users spend on the platform, and opportunities related to advertising business revenue, Reddit is still in a very early stage when compared to the development trajectories of social media platforms like Facebook and Snapchat.

Editor/Lambor