Reddit initiated with an Underperform at Bernstein

Bernstein initiated coverage of Reddit (RDDT) with an Underperform rating and $40 price target. The firm says the company’s longer term promises of growing the advertising base, profits being just around the corner and the “dream of all the non-ad upside – are promises we’ve heard too many times.” Pinterest (PINS) and Snap (SNAP) “continue to struggle to live up to their potential with higher engagement/commercial intent, better ad tools, and decent social graphs,” so “what hope does Reddit have with their worst-in-class engagement, anonymous user base, and NSFW content?” asks the analyst.