Reddit is 'an institutional meme stock' says analyst, sees 15% downside risk By Investing.com

- Reddit Inc (RDDT) had a highly successful IPO last month, with shares surging over 120% shortly after debut - Existing investors raised nearly $750 million from the IPO - Reddit stock recently lost all its gains and is facing downside risks, with shares dropping below debut price - Wall Street analysts believe Reddit stock is overvalued and face challenges similar to smaller social media platforms - Bernstein analysts initiated coverage of RDDT with underperform rating, setting a target price of $40, implying a 15% downside potential - Baird Equity Research gave Reddit stock a Neutral rating, citing lack of visibility for additional upside potential compared to their estimates