01:06 PM EDT, 05/02/2025 (MT Newswires) -- Reddit ( RDDT ) is "well positioned" to keep expanding its presence in the roughly $250 billion digital advertising market, Oppenheimer said in a report Friday.

The social media platform reported Q1 revenue growth of 61% year-over-year, coming in 6% above Wall Street expectations. Despite a slower April for daily active users, Reddit ( RDDT ) guided for Q2 revenue to increase 49% year-over-year, 7% above consensus estimates, the report said.

Reddit's ( RDDT ) ad business showed notable strength, with the number of advertisers growing 50% from the previous year, and key verticals included pharmaceuticals, autos, retail, telecom and finance, the report said, adding that more than 90% of managed advertisers have adopted Reddit's ( RDDT ) tracking pixel, and ad pricing is beginning to act as a tailwind.

The platform's early monetization strategies have shown positive results, with ad pricing remaining stable even as impressions surged in 2024, Oppenheimer said, adding that "We believe Reddit's ( RDDT ) [more than] 2 [Billion] posts and [more than ] 20 [Billion] comments is one of the best-written and most authentic sources of human interaction on the internet."

Oppenheimer maintain an outperform rating on Reddit ( RDDT ) raised its price target to $150 from $125.

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