From Yahoo Finance: 2025-03-20 12:29:00

Shares of Reddit (NYSE: RDDT) have dropped 14% since last Friday, trading around $110 as of Thursday. Analysts are becoming more bearish on the company, attributing its past growth to Google’s algorithm favoring Reddit. CEO Steve Huffman sold $15.8 million in stock, with a sell rating from analysts.

Reddit’s stock soared from $46 to $225 since going public in 2024 but is now down to $110. Analysts James Cordwell and Joseph Barker believe Reddit’s growth is plateauing due to Google’s algorithm changes. With a sell rating and $75 price target, the stock remains volatile despite trading at 36 times forward earnings.

Deutsche Bank analyst Benjamin Black thinks Reddit’s stock has factored in concerns about Google and growth. While the stock is less expensive now, it remains volatile. The Motley Fool’s Stock Advisor team did not include Reddit in its top 10 stocks, advising investors to consider other options for potential returns.

Investors are urged to look beyond Reddit and consider the top 10 stocks recommended by The Motley Fool’s Stock Advisor team. Past recommendations like Nvidia have shown significant returns, with Stock Advisor outperforming the S&P 500 with an average return of 840%. Join Stock Advisor for access to the latest top stock recommendations.



Read more at Yahoo Finance: Why Reddit Stock Is Sinking This Week