Reddit, Inc. (NYSE:RDDT) shares are soaring Wednesday following the company's blockbuster third-quarter results release after Tuesday's closing bell. Analysts' are lifting price targets on the stock and reactions are pouring in. 

The Details: Reddit beat analysts' expectations on the top and bottom lines with third-quarter revenue growing 68% year-over-year and achieved GAAP for the first time since the company's IPO in March. Reddit also reported Daily Active Uniques (DAUq) increased 47% year-over-year to average 97.2 million in the quarter. 

Reddit CEO Steve Huffman highlighted the company's growing reach and user base during the earnings call. 

"Reddit’s influence continues to grow across the broader Internet. In 2024, so far, the word Reddit was the sixth most googled word in the United States, underscoring that when people are looking for answers, advice, or community, they seek out Reddit specifically," Huffman said. 

Read Next: Reddit Stock Soars After Strong Q3 Results, Q4 Guidance Above Estimates: DAUq’s Grow 17% And More

JMP Reaction: JMP analyst Andrew Boone also noted Reddit's growth in engagement and highlighted total conversation page views growth of 40% year-over-year and U.S. logged-in users growth of 29%. JMP maintained its Market Outperform rating on Reddit and raised its price target from $84 to $118 citing the platform's growth coupled with the early stages of its advertising monetization. 

Piper Sandler "Favorite": Piper Sandler analyst Thomas Champion said Reddit remains a "favorite name" of the firm. The analyst says further upside for the stock is driven by strong user growth, data licensing ramping, new ad products and incremental margins above 90%. Piper Sandler reiterated its Overweight rating on Reddit's stock and raised its price target from $70 to $115. 

Roth MKM: Roth MKM analyst Rohit Kulkarni highlighted comments made by CEO Huffman during the company's post-earnings conference call which explained Reddit's users are getting into conversations

faster on the platform /'/with 40% growth in conversation page views and a five-fold increase in the number of “Ask Me Anything” sessions created. 

"Our conversation page views exceeded 90 billion, growing 40% year-over-year in Q3 as users are getting into the conversations faster and more often. We refreshed the Ask Me Anything, or AMA, product, which led to a five-fold increase in the number of AMAs created in the new format," Huffman said during the call. 

Roth MKM maintained its Buy rating on Reddit and raised its price target from $89 to $116 following the report. 

Other analysts updated their coverage on Reddit's stock, including:

• Needham analyst Laura Martin maintained a Buy rating and raised the price target from $85 to $120.
• Bank of America Securities analyst Justin Post maintained Reddit with a Neutral and raised the price target from $84 to $99.
• Goldman Sachs analyst Eric Sheridan maintained a Neutral rating and raised the price target on Reddit shares from $68 to $105.  

Price Action: According to Benzinga Pro, Reddit shares are up 40.6% at $114.94 at the time of publication Wednesday. 

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