Redburn Issues 'Sell' Rating for Reddit, Citing Google Algorithm Risks

Reported 2 days ago

Redburn analysts downgraded Reddit's stock to a 'sell,' suggesting that its growth is overstated and excessively reliant on Google Search traffic. While Reddit's financial performance post-IPO has been strong, the analysis indicates a slowdown in user growth and highlights the risk of dependency on Google's algorithm, which could potentially reverse favorable trends. The analysts are concerned that Reddit's appeal may be waning, as new user growth is primarily attracted by search inquiries rather than sustained engagement.

Source: YAHOO

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