Weekly Recap | Reddit +0.95%, most brokers rate it buy

The Week

Reddit added 0.95% for the week, closing at $154.46, ahead of the S&P 500’s 0.09% gain by about 0.86 percentage points. It was a choppy week with an intraweek range of 12.58%. Monday (Aug 31) opened at $151.32 and closed at $147.81, Tuesday slid to $143.80 before closing at $144.64, Wednesday spiked to $158.10, Thursday closed at $155.99, and Friday settled at $154.46. Wednesday’s 6.24m shares traded were the weekly peak against an average 4.15m.\n\n## Key Events\nThe week’s main threads were EU regulation and CEO appearances. On Monday (Aug 31), ChatGPT, Reddit and Roblox were reported to adhere to the EU’s ‘very large platform’ rules, bringing Reddit under tighter online platform oversight. On Tuesday (Sep 1), Reddit confirmed CEO Steve Huffman would speak at the Goldman Sachs Communacopia + Technology Conference. By Wednesday (Sep 2), Reddit rose nearly 8% intraday and some call options surged 1,666% as traders leaned into the Goldman event. A Wednesday disclosure also showed Huffman disposed of 18,000 common shares worth about $2.67m.\n\n## Analyst Ratings\nOf 34 institutions covering Reddit, 16 rate it buy, 6 rate it overweight, 11 rate it hold and 1 rate it sell. Together, 22 institutions assign buy or overweight ratings. The consensus rating is buy, with a consensus target of $213.10, about 37.97% above the current price. Targets range from $130.00 to $300.00, showing wide disagreement. Reddit ranks 6th by rating among 61 companies in the internet content and information industry.\n\n## The Week Ahead\nInvestors will be watching whether Reddit can hold its valuation after a week of regulatory headlines and insider selling. On the latest trading day, large-lot flows were net positive, though the capital snapshot is point-in-time rather than a weekly aggregate. On the macro side, US initial jobless claims, PPI and existing home sales are due on Thursday, Sep 10, with prior readings of 206k, 0% and 4.06m and consensus expectations around 205k, 0.4% and 3.99m.\n\n## In Short\nReddit rose 0.95% for the week and beat the S&P 500, even as EU regulatory tightening and CEO share disposal ran alongside. The consensus buy rating and target 37.97% above spot are the main supports on the ratings side. On the price side, Reddit closed at $154.46, below the 20-day average at $156.06 and the 60-day average at $169.82. Valuation sits around 34.12x P/E and 9.04x P/B. The next leg depends on the pace of EU implementation and whether next week’s macro data eases or rebuilds pressure.\n\nThis article is generated by LongbridgeAI from market data, for information only and not investment advice.