RDDT: Reddit Stock Surges 14% After Bullish Call by Analyst. Is It Really Time to Buy?
Less than 1 min read
Key points:
- Reddit stock pops 14%
- Analysts at Loop bullish
- Wall Street isn’t too sure
Loop Capital said the chat messaging platform has pretty big upside potential. The company is worth $21 billion. How much more upside room?
💸 Reddit Soars on Bullish Call
- Reddit stock
RDDT blasted off 14.4% in regular trading Tuesday following a bullish commentary by banking and advisory firm Loop Capital. Analysts at the firm praised the chat messaging platform, helping overturn a month-long decline, which had slashed the stock’s valuation by 52%. - Reddit has "the biggest upside potential relative to Street estimates in our coverage universe," the analyst said as they bumped up their price target to $210 from $180, implying growth of roughly 78%.
⚙️ Share Price Action
- Shares closed Tuesday’s cash session at $122.73 a piece, valuing the company at $21.5 billion. That’s still some 45% away from the company’s record market cap, which was floating at more than $30 billion in mid-February. And then earnings happened. And that wasn’t pretty.
- Reddit CEO Steve Huffman couldn’t assuage investors' concerns over languishing growth even as he blamed a Google algo for the results. So is now the time to be bullish on the shares?
🔔 Reddit’s Outlook
- Wall Street isn’t too sure about that. Analysts have slapped a Moderate Buy consensus rating divided into 12 Buys, six Holds, and one Sell issued over the past three months. The average price target is $207 per share, implying a 69% upside swing.
- Shares of Reddit are down about 26% on the year. The company floated shares in New York back in March 2024, not without some mixed reactions by its community.