Reddit rallies after three-day slump as analyst calls selloff excessive
Summary
Reddit shares rose more than 10% on Tuesday, reversing a three-day slump that coincided with a broader decline among technology companies. Reddits stock market upswing was likely bolstered by a Loop Capital analyst note published Tuesday that reiterated a buy rating and characterized the companys shares as "extremely attractive." Reddits shares have since spiraled downward along with other tech companies like Apple , Nvidia and Tesla off of concerns related to President Donald Trumps tariffs and growing fears of a recession. Loop Capital managing director Alan Gould acknowledged in the note that investors are operating in a "risk-off market environment," but he argued that Reddit "has been one of the top performing stocks over the past year," aside from its most recent dip. "RDDT wildly exceeded ours and Street estimates for 2024, which explains why the stock increased almost 7-fold from a $34 IPO price to a peak of $230 in less than a year," Gould wrote, noting Reddits growing revenue and improved advertising tools, among other positive developments.