Reddit (RDDT) Stock: Loop Capital Says 50% Upside From Current Levels

TLDR

• Loop Capital reiterated its Buy rating on RDDT with a $260 price target, implying 50%+ upside
• Reddit stock jumped over 8% on the back of the bullish analyst note
• Revenue growth has exceeded 70% for each of the last four trailing quarters
• RDDT is still down 25% year-to-date and 33% below its 52-week high of $270.71
• Insider selling of $39.8 million over the past three months remains a concern for investors

Reddit (RDDT) stock surged more than 8% on Friday after Loop Capital reiterated its Buy rating and kept its $260 price target on the stock. With RDDT trading around $169 at the time of the note, that target implies upside of more than 50%.

Reddit, Inc., RDDT

The stock had been trading at $181.30 at the time of reporting.

Loop Capital pointed to Reddit’s consistent revenue growth as the core reason for its conviction. The platform has posted revenue growth above 70% for each of the last four consecutive quarters — a run rate that the firm says justifies a premium valuation.

At roughly 25 times expected 2027 earnings, the analyst argued the stock looks attractively priced relative to its growth profile.

AI Data Licensing in Focus

One area Loop Capital flagged as an expansion driver is Reddit’s role in AI data licensing. Google is among the companies paying for access to Reddit’s content library, giving the platform a revenue stream beyond traditional advertising.

The firm believes continued advertiser monetization, combined with data licensing deals, gives Reddit multiple paths to grow earnings over the next few years.

The bullish note comes at a time when Reddit has been one of the weaker performers in consumer internet this year. RDDT is down 25% since January and sits 33% below its 52-week high of $270.71, hit in September 2025.

For context, investors who put $1,000 into Reddit at its March 2024 IPO would be sitting on roughly $3,594 today.

Headwinds Haven’t Gone Away

The Loop Capital note didn’t erase the concerns that have been weighing on the stock. Just 13 days ago, RDDT dropped 5.9% after Meta quietly launched a standalone app called “Forum” — a direct challenge to Reddit’s community-based model.

That same week, CEO Steve Huffman sold a portion of his holdings, and a regulatory fine added further pressure. The combination hit sentiment hard.

Insider selling has been a recurring theme. Over the past three months, insiders have sold $39.8 million worth of RDDT stock, with just one buying transaction on record involving 10,500 shares.

Reddit’s P/E ratio currently stands at 50.72x, well above the market average. The GF Score — a metric that ranks stocks across financial strength, profitability, growth, valuation, and momentum — sits at 43 out of 100, reflecting moderate long-term return potential.

Profitability remains a weak spot, with a profitability rank of just 4 out of 10, even as the company scores a perfect 10 for growth.

Loop Capital’s note is the most recent catalyst moving the stock, with the $260 price target standing as the most bullish call on Wall Street relative to current trading levels.

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