Reddit (RDDT) shares have plunged 38.8% in the year-to-date period, underperforming the broader Zacks Computer & Technology sector’s decline of 2.6%. The Zacks Internet - Software industry increased 5.4% in the same time frame.Shares of the company have underperformed its closest peer, Alphabet (GOOGL) . Shares of Alphabet have lost 10.5% in the year-to-date period. The underperformance can be attributed to the challenging macroeconomic conditions, and tariffs negatively impact spending, particularly discre ...

Group 1: Target and Retail Sector - Target's earnings report led to a 5% drop in stock price, followed by a 3% rebound, indicating market disappointment but limited movement overall [3][4] - The company lowered its guidance and is losing market share to competitors like Walmart and Costco, compounded by a boycott related to its DEI policies [4][5] - Williams Sonoma also reported disappointing earnings, initially dropping 9% before stabilizing, reflecting a broader trend of bad news being priced into retail stocks [5][6] - Gap is highlighted as a potential standout, with a 59% increase in stock price since mid-April, suggesting positive market sentiment ahead of its upcoming earnings report [6][7] Group 2: Reddit and Market Volatility - Reddit's stock experienced significant volatility, dropping 24% over the week after an 11% rally, raising concerns about changing user habits due to AI [9][10] - Despite strong earnings showing a 61% revenue increase and a 31% rise in daily active users, the market is questioning the sustainability of this growth amid shifting traffic patterns [11][10] Group 3: CoreWeave and AI Trade - CoreWeave's stock has surged approximately 80% since its IPO, driven by a $4 billion deal with OpenAI for cloud computing services [14][16] - The company reported a 420% year-over-year revenue increase, indicating strong demand for AI infrastructure [16][18] - The ongoing AI trade is attracting investor interest, with CoreWeave exemplifying the potential for new players in the market [13][18] Group 4: Bond Market and Economic Indicators - Moody's downgrade of US treasuries has led to a rise in the 30-year treasury yield, which is currently above 5%, the highest since 2007 [22][23] - The downgrade reflects concerns over rising national debt and fiscal deficits, with no immediate resolution in sight [24][25] - Upcoming economic data, including the PCE inflation gauge, is anticipated to provide further insights into the economic landscape [28][29]

Shares of Reddit (RDDT 3.98%) were sliding this week in response to an analyst downgrade on the social media stock. It fell sharply in the broader sell-off on Wednesday in response to a weak Treasury auction and rising Treasury yields, perhaps reflecting a lack of confidence in the U.S. economy and recessionary fears.According to S&P Global Market Intelligence, the stock was down 11.6% through Thursday at 2:10 p.m. ET. Reddit faces a new threatThe stock fell 5% on Monday in response to Wells Fargo's downgra ...

One of the more up-and-coming social media stocks in recent times, Reddit (RDDT -9.41%), went down quite a bit on Wednesday. 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's 1.6% decline.The threat of AIThat pundit was Baird's Colin Sebastian, and before market open he changed his Reddit fair-value assessment to $120 per share, well down from his previous $ ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Core Viewpoint - The social networking market is projected to experience significant growth, with Reddit (RDDT) and Bumble (BMBL) positioned to benefit from this trend, although BMBL shows greater upside potential due to stronger earnings growth and a cheaper valuation [2][15]. Group 1: Market Overview - The global social networking market size is expected to grow from $95.33 billion in 2025 to $209.82 billion by 2030, reflecting a CAGR of 17.09% [2]. - Both RDDT and BMBL are likely to capitalize on the rapid growth in the social networking sector [2]. Group 2: Reddit (RDDT) Analysis - RDDT's advertising revenue increased by 61% year over year, reaching $358.6 million in Q1 2025 [3]. - Weekly active users grew by 31% to 401 million, while daily active users also rose by 31% to 108 million, indicating increased engagement [3]. - The introduction of Reddit Answers, an AI-powered search tool, reached one million weekly users and expanded globally [4]. - Enhancements to Reddit Pro in May 2025 included streamlined profile setup and new tools for businesses to engage with communities [5]. - Despite these advancements, RDDT faces intense competition and a stretched valuation, which may hinder its market share in advertising [16]. Group 3: Bumble (BMBL) Analysis - BMBL is enhancing user experience through new features, AI-driven personalized matching, and growth in its Bumble BFF friendship platform [6][7]. - The Bumble BFF platform has over one million active users, particularly appealing to Gen Z and young professionals [8]. - BMBL is actively removing bots and low-quality profiles to foster a trusted community, which is crucial for sustainable growth [9]. Group 4: Financial Performance and Valuation - Year-to-date, RDDT and BMBL shares have declined by 34% and 30%, respectively, due to a challenging macroeconomic environment [10]. - RDDT shares are currently overvalued with a Value Score of F, while BMBL shares are trading at a cheaper valuation with a Value Score of A [12]. - The Zacks Consensus Estimate for RDDT's 2025 earnings is $1.21 per share, reflecting a 136.34% year-over-year increase, while BMBL's estimate is 86 cents per share, indicating a 118.66% increase [14]. Group 5: Conclusion - BMBL is positioned for long-term success with its focus on expanding its platform beyond dating, AI-driven personalization, and engagement with Gen Z [15]. - RDDT's growth is hindered by competition and valuation concerns, making BMBL a stronger investment choice [15][17].

Two social media giants, Snap Inc (NYSE:SNAP) and Pinterest Inc (NYSE:PINS), are shifting lower on Wall Street today. SNAP was last seen down 0.7% at $8.69, while PINS drops 0.9% to trade at $32.27, after sector peer Reddit (RDDT) suffered a downgrade from Wells Fargo this morning. Disrupted traffic from Google's artificial intelligence (AI) search engine is the big concern, creating potential long-term headwind for many online sites.SNAP is headed for its fourth drop in five sessions, though the 20-day mov ...

Reddit Inc (NYSE:RDDT) stock is under pressure this morning, last seen 5% lower at $107.52, after Wells Fargo downgraded the stock to “equal weight” from “overweight” and slashed its price target to $115 from $168. The brokerage firm warned that disruptions in search traffic could become permanent as Google rolls out AI-integrated search, posing a long-term headwind for Reddit’s visibility and traffic-based monetization.This bear note appears overdue and could open the floodgates for more. Despite Reddit st ...

Michael Wiggins De Oliveira is an inflection investor. This means buying into cheap companies at the moment when their narrative is changing and the business is on a path toward becoming significantly more profitable over the next year.With a focus on tech and “the Great Energy Transition (including uranium)”, Michael runs a concentrated portfolio with approximately 15 to 20 stocks and an average holding period of 18 months. Through his 10+ years analyzing countless companies, Michael has accumulated outsta ...

Alexis Ohanian, Principal Owner, Angel City Football Club & Los Angeles Golf Club, looks on during a conversation with Olympic sprinter Gabby Thomas during the Business of Women Sport Summit presented by Deep Blue Sports and Axios at Chelsea Factory on April 23, 2024 in New York City.Reddit co-founder Alexis Ohanian has purchased a minority stake in Chelsea FC Women, giving him an ownership stake in two of the most-valuable teams in women's sports.The founder of venture capital firm Seven Seven Six and husb ...