Reddit: It's Time To Sell, Animal Spirits Have Taken Over (Rating Downgrade)
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Reddit, Inc.'s stock has been downgraded to a sell rating due to its unsustainable valuation after a significant surge. The stock is trading at an ~18x forward revenue multiple, which is twice that of Meta. Concerns include potential revenue growth deceleration and lower ARPUs from international expansion.
January 29, 2025 | 4:30 pm
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Reddit, Inc. has been downgraded to a sell rating due to its high valuation and potential revenue growth challenges. The stock's forward revenue multiple is ~18x, double that of Meta, raising concerns about sustainability.
The downgrade to a sell rating is based on Reddit's high valuation, which is unsustainable compared to peers like Meta. The potential for deceleration in revenue growth and lower ARPUs from international expansion further supports the negative outlook.
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IMPORTANCE 90
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