Reddit could be in trouble after a strong public market debut, according to New Street Research.
The firm is the first on Wall Street to issue a stock rating on Reddit.
Reddit went public Thursday after pricing its IPO at $34 per share.
"High margin data licensing and direct response advertising will drive operating leverage over the mid and long term," Salmon said.
"Expense growth slowed beginning in 1Q23, owing to operating efficiencies put into place throughout 2023 and Reddit remains focused on improving leverage over the long term."
Persons:
Reddit, Dan Salmon, Salmon
Organizations:
New, Research
Locations:
1Q23