New Street starts Reddit at Neutral after rally ‘to the moon’ in first 3 days

As previously reported, New Street initiated coverage of Reddit with a Neutral rating and $54 price target after the stock closed at $59.80 on Monday, up 76% from its $34 IPO price. The firm expects volatility in the shares into the first earnings report, which it assumes will come in early May, and three days after when the lockup expires, the analyst tells investors. The firm expects the near- and mid-term institutional narrative will be driven by an Open AI data licensing win, which it views as “baked into the stock,” as well as growth in users and the number of advertisers, the analyst added.