By Emily Dattilo

Reddit user growth is on track to slow down this year, Redburn Atlantic argued on Monday.

Analysts James Cordwell and Joseph Barker launched coverage of the social-networking site at Sell with a price target of $75.

The stock fell 5.6% to $121 on Monday. Reddit began trading last March and shares have soared more than 200% since the IPO , according to Dow Jones Market Data.

Reddit deems itself "the frontpage of the internet," the analyst team wrote, but the company's potential and value are overstated. They argued it remains a niche platform.

"As a result, we expect user growth to stall in FY25," analysts continued. "The strong growth of the past 18 months has been predominantly the result of Google changing its search algorithm to favour Reddit, but there is clear evidence that the boost to traffic and visibility from these changes is hitting a ceiling, with a risk that what Google giveth, it will taketh away."

Last month, Reddit beat quarterly estimates but user growth missed forecasts.

Write to Emily Dattilo at emily.dattilo@dowjones.com

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March 17, 2025 12:36 ET (16:36 GMT)

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