Reddit Stock Is Down on Disappointing User Growth. Why Analysts Say To Buy the Dip. | Global News Avenue

As reddit(Red) on Thursday at the social media company Weak user growthAnalysts say they see an opportunity Buy dipping sauce.

Deutsche Bank analysts believe Reddit’s user growth in the fourth quarter was blocked by a “short-term” shift in letters (GOOGL) Google search algorithm says they believe that “user blip creates attractive buying opportunities”. Analsyts maintains a “buy” rating and a stock target of $235, meaning the stock has about 18% upside compared to Thursday’s intraday price.

Analysts at Morgan Stanley raised their target from $200 to $210, telling clients to “buy Google Blip Dip”, pointing to Reddit’s “widespread strength across advertising verticals.” They also highlighted the potential benefits of the introduction reddit answeran artificial intelligence tool launched in December with a limited number of users. The Reddit answer is designed to answer users’ questions and provide a summary of Reddit threads, which analysts say could be “the main driver of retention.”

JPMorgan analysts raised their target from $142 to $185, telling clients Reddit “continue to execute well and capture ad revenue.” Analysts added that they believe Reddit will increase its advertising revenue by more than 20% in the next few years.

Reddit’s shares were nearly 8% on Thursday’s day to $199.72, but even at this level, their yields were from their IPO price is $34 March 2024.