Aug. 14 at 6:41 PM
Loop Capital sees a 58% upside ahead for Reddit
The recent volatility in Reddit
has created a buying opportunity for investors, according to Loop Capital.
Shares are down more than 20% so far this year, although they moved 12% higher on Friday after S&P Dow Jones Indices said Reddit would join the S&P 500
, starting Aug. 18. Loop Capital analyst Rob Sanderson believes they have much higher to go. His
$250 price target suggests 58% upside from Thursday’s close.
“Reddit continues to surface increasingly positive in conversations with digital marketing professionals, yet the marketing community is just beginning to understand the power of Reddit,” he said in a note Friday. “The company’s products continue to improve for users and advertisers, its evergreen human-generated content is integral to LLMs and a [scarce] resource for the industry.”
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