Reddit Shares Rise 14% Following Analyst's Positive Review

Reddit's stock (RDDT) rebounded by over 14% following a bullish note from Loop Capital, which maintained a Buy rating, arguing that the recent 50% drop was excessive. Despite a three-day decline, the stock's rise to $122.73 was bolstered by positive quarterly results showing a 71% year-over-year sales increase, although user numbers dropped due to a Google search algorithm change. Loop Capital analyst Alan Gould highlighted Reddit's potential for significant growth, citing the platform's strong advertising tools and data licensing opportunities, with a price target increase to $210. However, the stock remains down 23% over the past five sessions amid broader tech sector concerns, including worries over tariffs and a potential recession. Gould emphasized that Reddit has outperformed expectations for 2024 and has the highest upside potential of the stocks he covers. Additionally, the company aims to reach 1 billion daily active users in the long term, suggesting ambitious growth plans.