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This social media stock has struggled this year. Why one analyst says it's time to buy

Cnbc · · 339 words · By Liz Napolitano
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What to know about This social media stock has struggled this year. Why one analyst says it's time to buy

Reddit has several options to squeeze more dollars out of its businesses, including by renegotiating its content-licensing deals with large-language models, making its stock an attractive addition to investors' portfolios, according to D.A.

Claims checked 6
Techniques found 0
Topics 0

Coverage spectrum

Coverage gap: Low Left coverage
Left0%
Center75%
Right25%

4 sources compared across this story cluster. This is an eFinder estimate from indexed source coverage, not an editorial rating.

What happened

Reddit has several options to squeeze more dollars out of its businesses, including by renegotiating its content-licensing deals with large-language models, making its stock an attractive addition to investors' portfolios, according to D.A.

Why it matters

The investment firm assigned a buy rating to the social media name.

Common ground

It also set a $200 price target on shares, implying 20.3% upside from Monday's close.

Perspective signals

No major persuasion pattern has been attached yet, so the source, headline, and evidence should carry most of the weight for readers.

open_in_new Read the original article: https://www.cnbc.com/2026/04/21/this-social-media-stock-has-struggled-this-year-…

fact_checkClaims Checked

eFinder analyzed this article and checked 6 claims against available evidence, cross-references, web search, and Wikipedia. Here is what the fact-checking layer found.

info Single Source 5
check_circle Corroborated 1
info
Claim 1: “Shares of Reddit have declined nearly 28% since the beginning of the year.”
SINGLE SOURCE
While evidence mentions the stock was 'hammered' and closed 'more than 9% in the red' on a specific day, there is no data provided to confirm a year-to-date decline of nearly 28%.
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web search NEUTRAL — Investors traded assertively out of the stock following an analyst's price-target cut, to the point where it closed the day more than 9% in the red. That was a far steeper fall than the S&P 500 index'…
https://www.fool.com/investing/2025/05/21/why-reddit-stock-g…
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web search NEUTRAL — Yahoo Finance's market overview provides up to the minute charts, data, analysis and news about US and world markets, futures, bonds, options, currencies and more.IPOs. Economic events. Stock comparis…
https://finance.yahoo.com/markets/
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web search NEUTRAL — Stock market data coverage from CNN. View US markets, world markets, after hours trading, quotes, and other important stock market activity.
https://edition.cnn.com/markets
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Claim 2: “Reddit has highly profitable deals with Google and Open AI, according to the analyst.”
CORROBORATED
Multiple independent web search results confirm that Reddit has content-licensing agreements with Google and OpenAI, with specific mentions of $60M and $70M figures.
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web search NEUTRAL — Reddit reportedly struck deals of $60 million per year with Google and OpenAI last year. The company scored $35 million in “other” revenue — which includes content licensing agreements — in its most r…
https://sherwood.news/business/reddit-bounces-on-report-that…
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web search NEUTRAL — We know Google pays Reddit $60M, and Reddit has content deals with only Google and OpenAI. That leaves OpenAI paying about $70M.
https://searchengineland.com/openai-may-pay-reddit-70m-for-l…
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web search NEUTRAL — Reddit, which has multi $1,000,000 agreements with Open Eye and Google to license its valuable user data, alleges that Anthropic access Reddit over 100,000 times after saying it had stopped.
https://www.linkedin.com/posts/emilprotalinski_reddit-has-su…
info
Claim 3: “Reddit sued Anthropic last year, alleging the startup scraped its user-generated content to train its Claude AI model without receiving permission or paying to access the data.”
SINGLE SOURCE
One search result explicitly mentions that Reddit sued Anthropic alleging unauthorized access/scraping of data. The other results for this claim are general Wikipedia/About pages for Reddit and do not mention the lawsuit.
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web search NEUTRAL — Reddit (/ ˈrɛdɪt / ⓘ RED-it, formerly stylized reddit) is an American proprietary social news aggregation and forum social media platform. Registered users (commonly referred to as "redditors") submit…
https://en.wikipedia.org/wiki/Reddit
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web search NEUTRAL — Reddit is a network of communities where people can dive into their interests, hobbies and passions. There's a community for whatever you're interested in on Reddit.
https://www.reddit.com/
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web search NEUTRAL — The most official Reddit community of all official Reddit communities. Your go-to place for Reddit updates, announcements, and news. Occasional frivolity.
https://www.reddit.com/r/reddit/wiki/index/
info
Claim 4: “The stock has declined nearly 28% in 2026”
SINGLE SOURCE
The provided evidence mentions a stock drop on a specific Wednesday in May 2025 and general earnings challenges, but does not provide a specific figure of a 28% decline for the year 2026.
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web search NEUTRAL — Most Active Stocks Daily Stock Gainers Daily Stock Losers. Why Reddit Stock Got Hammered on Wednesday. By Eric Volkman – May 21, 2025 at 6:16PM EST.That was a far steeper fall than the S&P 500 index's…
https://www.fool.com/investing/2025/05/21/why-reddit-stock-g…
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web search NEUTRAL — Reddit's diluted earnings per share of $0.36 fell below analysts' estimates of $0.48. Reddit's daily active users in the December quarter hit 101.7 million, up nearly 40% from 2023 but less than the 1…
https://finance.yahoo.com/news/reddit-stock-tumbles-as-daily…
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web search NEUTRAL — Reddit Inc. Price and Consensus Reddit Inc. price-consensus-chart | Reddit Inc. Quote. The consensus mark for Reddit’s 2025 earnings is pegged at $1.21 per share, unchanged over the past 30 days. The …
https://www.zacks.com/stock/news/2582880/reddit-facing-chall…
info
Claim 5: “The investment firm [D.A. Davidson] assigned a buy rating to the social media name.”
SINGLE SOURCE
The provided web search results show D.A. Davidson assigning buy ratings to TSMC, Apple, and Micron, but there is no evidence in the provided text that they assigned a buy rating to Reddit.
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web search NEUTRAL — On February 12, DA Davidson began coverage of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), issuing it a Buy rating and a $450 price target. The firm stated that the company’s “compou…
https://au.finance.yahoo.com/news/da-davidson-assigns-tsmc-t…
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web search NEUTRAL — Tom Forte, senior research analyst D.A. Davidson, joins 'Power Lunch' to discuss why he has a buy rating on Apple with a $120 price target.
https://www.youtube.com/watch?v=obUcqjkEZaM
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web search NEUTRAL — D.A. Davidson Assigns MU Stock a Buy Rating.Is MU a Good Stock to Buy Right Now? With 27 Buys and three Holds, Wall Street has a Strong Buy consensus rating on Micron Technology stock. The average MU …
https://www.tipranks.com/news/d-a-davidson-assigns-micron-st…
info
Claim 6: “It also set a $200 price target on shares, implying 20.3% upside from Monday's close.”
SINGLE SOURCE
The provided evidence discusses D.A. Davidson price targets for Rivian and Mayville Engineering, but contains no mention of a $200 price target for Reddit.
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web search NEUTRAL — Investing.com - DA Davidson raised its price target on Rivian Automotive Inc (NASDAQ:RIVN) to $15 from $14 while maintaining a Neutral rating on the stock. The firm issued the updated price target Mon…
https://www.investing.com/news/analyst-ratings/da-davidson-r…
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web search NEUTRAL — DA Davidson raised its price target on Rivian on Monday, citing the EV maker’s apparent on-schedule R2 ramp following last week’s first-quarter earnings release.
https://eletric-vehicles.com/rivian/da-davidson-raises-rivia…
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web search NEUTRAL — DA Davidson raised the firm’s price target on Mayville Engineering (MEC) to $32 from $23 and keeps a Buy rating on the shares after its Q1 results.
https://www.tipranks.com/news/the-fly/mayville-engineering-p…
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.