Reddit stock dropped over 9% due to analyst cutting price target amid concerns of AI threat.

From Nasdaq: 2025-05-21 18:16:00

Reddit (NYSE: RDDT) experienced a significant drop of over 9% on Wednesday after an analyst cut the price target for the stock to $120 per share. The concern stems from the threat of artificial intelligence (AI) capabilities, particularly from tech giants like Alphabet, that could impact Reddit’s user growth. Despite this, Reddit’s forum-style platform remains popular and should continue to attract new users, potentially leading to growth in revenue and profitability.

While Reddit may face challenges from AI advancements, it still has room for growth and user engagement. The Motley Fool Stock Advisor team has identified other stocks with potential for significant returns, making Reddit not one of their top picks.



Read more at Nasdaq: Why Reddit Stock Got Hammered on Wednesday