CaryptosHeadlines Media Has Launched Its Native Token CHT.
Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT.
Join the Airdrop at the official website,
CryptosHeadlinesToken.com
Redburn Atlantic has initiated coverage on Reddit Inc. (NASDAQ: RDDT) with a notably bearish outlook, citing concerns about the company’s growth sustainability and advertising model. The recent initiation of coverage on Reddit Inc. has resulted in a “Sell” rating, with a price target set at $75 per share. This valuation suggests a potential 40% decrease from Reddit’s last closing price, reflecting Redburn’s skepticism about the company’s future prospects.
Reddit’s Dependency on Google Search, Advertising Model Among Key Concerns
A key concern highlighted by the firm is Reddit’s heavy reliance on Google Search for user growth, which is perceived as a short-lived advantage. Analysts argue that this dependency could diminish as Google updates its algorithms, potentially impacting Reddit’s ability to attract and retain users.
Furthermore, Reddit’s advertising model and premium valuation, especially when compared to competitors like Pinterest, are seen as additional challenges. Redburn’s analysis draws parallels to the difficulties faced by Twitter in scaling its ad business, suggesting similar hurdles for Reddit.
Join our Telegram group and never miss a breaking digital asset story.
RDDT Stock Brief
Reddit’s stock has experienced notable fluctuations, with the previous close at $128.21 and the opening price on March 17, 2025, at $123.62. As of 11:31 EDT on the same day, the stock was trading at $123.04, with a day’s range between $119.9276 and $126.00.
Over the past year, Reddit’s stock has seen significant volatility, with a 52-week low of $37.35 and a high of $230.41. Despite the current bearish outlook from Redburn, analyst recommendations remain mixed, with a mean target price of $202.106, suggesting varied opinions on the stock’s future trajectory.
Key financial metrics, including a forward P/E ratio of 183.64178 and a debt-to-equity ratio of 1.253, underscore the complex financial landscape Reddit navigates as it seeks sustainable growth and profitability.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
