As previously reported, Oppenheimer initiated coverage of Reddit (RDDT) with an Outperform rating and $125 price target. Following 49% stock pullback since February 19, the firm believes investors are properly discounting medium-term risks, reliance on Google (GOOGL), difficult Q2 daily average users comparison, weak international engagement, and risk of monetization wall. Oppenheimer believes Reddit will continue driving advertiser demand as it creates products around its highly targeted 1P data and subreddits.
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