Alphabet (GOOGL) is a behemoth in the digital advertising market in which Reddit (RDDT) is the latest challenger. Increasing deployment of AI and machine learning are driving content creation, while chatbots and virtual assistants are helping advertisers offer personalized user interactions and content personalization. These benefit both GOOGL and RDDT stocks. Both are expected to benefit from growing digital advertising spending, which, per eMarketer, expects to surpass 80% share of total ad spending in 20 ...

Company Performance - Reddit Inc. ended the latest trading session at $109.50, reflecting a -0.5% change from the previous close, underperforming the S&P 500's gain of 0.67% [1] - Over the past month, Reddit's shares have decreased by 30.86%, while the Computer and Technology sector and the S&P 500 have lost 7.99% and 5.28%, respectively [1] Upcoming Earnings - Reddit Inc. is expected to report earnings of $0.02 per share, indicating a significant year-over-year decline of 93.1%. Revenue is projected to be $374.53 million, representing a 54.15% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $1.16 per share and revenue at $1.83 billion, reflecting increases of +134.83% and +40.43% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Reddit Inc. suggest evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance and profit potential [4] Zacks Rank - Reddit Inc. currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed with an average annual gain of +25% for 1 stocks since 1988 [6] Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 94.5, significantly higher than the industry's average Forward P/E of 26.68. The PEG ratio stands at 2.86, compared to the Internet - Software industry's average PEG ratio of 2 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 75, placing it in the top 31% of over 250 industries [8]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

James Cordwell and Joseph Barker, analysts for the firm, said that much of Reddit's growth over the past few years has been "misconstrued" because it came from logged-out users as the main driver, with many of those users coming from Google's algorithm, according to the outlet. Reddit CEO Steve Huffman has repeatedly said that people are going to Google more with the intention of ending up on Reddit. But the Redburn analysts say this trend could lead to more logged-out user growth than logged-in user growth ...

Core Insights - Reddit (RDDT) shares have surged 85.1% over the past 12 months, significantly outperforming the broader Zacks Computer & Technology sector's return of 9.8% and the Zacks Internet - Software industry's rise of 19.4% [1][4] - The company's strong performance is attributed to robust user growth, improved advertising performance, and significant investments in AI-driven tools [2][5] User Growth and Advertising Performance - Reddit's advertising business grew 60% year over year to $395 million in Q4 2024, driven by higher impressions and more efficient ad placements [5] - Daily active users reached 101.7 million, marking a 39% year-over-year increase, with international users growing by 46% and logged-in users by 27% [7] New Tools and Features - In March 2025, Reddit introduced new tools to enhance user engagement, including post checks to prevent rule violations and post recovery features [9][10] - These updates aim to simplify posting and improve community engagement, allowing users to track post performance [10] AI-Driven Partnerships - Reddit has formed partnerships to create data and analytics products, notably with Intercontinental Exchange (ICE), leveraging its extensive data for financial industry applications [12][11] Earnings Estimates - For Q1 2025, Reddit expects revenues between $360 million and $370 million, with a Zacks Consensus Estimate of $374.53 million, indicating a year-over-year growth of 54.15% [13] Valuation and Growth Prospects - Reddit's stock is currently trading at a premium, with a forward Price/Sales ratio of 11.58, higher than its median of 9.62 and the industry's 5.22 [14][17] - The company aims to drive growth by expanding its advertising business and enhancing user experience, justifying its premium valuation [17]

Company Performance - Reddit Inc. closed at $109.91, with a decrease of -0.17% from the previous trading session, underperforming the S&P 500's gain of 1.08% [1] - The company's stock has declined by 41.16% over the past month, significantly worse than the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.02, representing a 93.1% decline compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $374.53 million, reflecting a 54.15% increase from the previous year [2] Full Year Projections - For the full year, earnings are projected at $1.16 per share and revenue at $1.83 billion, indicating increases of +134.83% and +40.43% respectively from the prior year [3] Analyst Projections - Recent shifts in analyst projections for Reddit Inc. should be monitored, as positive estimate revisions are seen as a favorable indicator for the company's business outlook [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Reddit Inc. at 2 (Buy), with a recent upward shift of 3.56% in the EPS estimate [6] - Historically, 1 ranked stocks have yielded an average annual return of +25% since 1988 [6] Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 94.55, which is a premium compared to the industry's average Forward P/E of 27.36 [7] - The company's PEG ratio stands at 2.86, while the Internet - Software industry average PEG ratio is 2.06 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Core Viewpoint - Reddit Inc. (RDDT) has experienced significant selling pressure, resulting in a 41.2% decline over the past four weeks, but analysts anticipate better earnings than previously expected, indicating a potential turnaround for the stock [1]. Group 1: Technical Analysis - The stock is currently in oversold territory, with a Relative Strength Index (RSI) reading of 28.19, suggesting that the heavy selling may be exhausting itself and a trend reversal could be imminent [5]. - RSI is a momentum oscillator that helps identify whether a stock is overbought or oversold, with a reading below 30 typically indicating an oversold condition [2][3]. Group 2: Fundamental Analysis - Over the last 30 days, the consensus earnings per share (EPS) estimate for RDDT has increased by 3.6%, reflecting a strong agreement among analysts regarding improved earnings prospects [6]. - RDDT holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a near-term turnaround [7].

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team covers medium and small-cap markets, as well as blue-chip companies, commodities, and broader investment stories [3] - Proactive's content includes insights across various sectors such as biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] Group 2 - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Group 1 - Michael Wiggins De Oliveira is an inflection investor, focusing on buying undervalued companies at pivotal moments when their profitability is expected to increase significantly over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group 2 - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [2]

Core Viewpoint - Reddit, Inc. (NYSE: RDDT) shares have declined over 40% from their all-time highs, presenting a significant buying opportunity for long-term value investors [1] Company Analysis - Reddit is characterized as an ultra-high-quality business, meeting various investment criteria [1] - The decline in share price is viewed as a temporary setback, with potential for recovery and growth in the long term [1] Investment Perspective - The current market conditions are seen as favorable for long-term investors to acquire shares at a discounted price [1]