Reddit, the popular social media platform, experienced a significant rebound of over 14% on Tuesday.

Reddit's stock price rebounded significantly on Tuesday, rising over 14% despite the overall tech sector's weakness. This rebound may be attributed to Loop Capital's positive research report, which maintained a "buy" rating on Reddit's stock and called it "highly attractive." Loop Capital analyst Alan Gould highlighted Reddit's strong growth potential, despite a recent decline in user numbers due to changes in Google's search algorithm. Gould acknowledged investors' current cautiousness but believed Reddit's fundamentals remained strong. He noted that the company's fourth-quarter sales grew 71% year-on-year, the fastest growth rate in any quarter since 2022, which supported his view.

Gould also emphasized that the company's improved advertising tools and data licensing opportunities could be catalysts for future growth. Despite the current market uncertainty, Reddit's growth potential makes it an attractive investment opportunity.

Wall Street analysts have a consensus "Moderate Buy" rating on RDDT stock based on the 12 "Buy," 6 "Hold," and 1 "Sell" ratings given over the past three months. The average target price is $207.06 per share.