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Reddit Inc. (RDDT) Registers a Bigger Fall Than the Market: Important Facts to Note
ZACKS· 2025-04-15 22:55
Company Performance - Reddit Inc. closed at $96.46, reflecting a -1.83% change from the previous day, which is less than the S&P 500's daily loss of 0.17% [1] - Over the past month, Reddit's shares have decreased by 21.74%, underperforming the Computer and Technology sector's loss of 6.26% and the S&P 500's loss of 3.94% [1] Upcoming Earnings - The company's earnings report is scheduled for May 1, 2025, with an expected EPS of $0.03, indicating an 89.66% decline from the same quarter last year [2] - Revenue is forecasted to be $373.57 million, representing a 53.76% increase compared to the corresponding quarter of the previous year [2] Full Year Projections - For the full year, earnings are projected at $1.12 per share and revenue at $1.8 billion, reflecting increases of +133.63% and +38.15% respectively from the prior year [3] Analyst Forecast Revisions - Recent revisions to analyst forecasts for Reddit Inc. are important as they reflect short-term business trends, with positive changes indicating analyst optimism about the company's profitability [4] Stock Performance and Zacks Rank - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Reddit Inc. at 3 (Hold), with the Zacks Consensus EPS estimate having decreased by 4.09% in the past month [6] - Historically, 1 ranked stocks have generated an average annual return of +25% since 1988 [6] Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 87.98, which is significantly higher than the industry average Forward P/E of 25.15 [7] - The company also has a PEG ratio of 2.71, compared to the average PEG ratio of 1.91 for Internet-Software stocks [8] Industry Context - The Internet-Software industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [9]
Reddit: Blood In The Streets, Tariffs Can't Stop This Growth Story
Seeking Alpha· 2025-04-14 21:06
It is time to upgrade the stock of Reddit (NYSE: RDDT ). The stock has been hammered amidst the tariff war, as the company may be affected by a pullback in online advertising spending in the event of a recession. While tariffs appearJulian is the leader of the investing group Best Of Breed Growth Stocks where he only shares positions in stocks which have a large probability of delivering large alpha relative to the S&P 500. He also combines growth-oriented principles with strict valuation hurdles to add an ...
Reddit: A Good Time To Buy The Sharp Dip (Rating Upgrade)
Seeking Alpha· 2025-04-14 07:05
When markets are this volatile, it's the exact perfect time to be an active investor. I continue to individually assess every stock in my portfolio, as valuations are gyrating wildly and each company's impact from tariffs and the slowing macroeconomy will be different.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry to ...
Reddit Stock Eyes Double-Digit Upside on Analyst Targets
MarketBeat· 2025-04-11 11:01
Even though the technology sector in the United States has been the center of attention in recent weeks as President Trump's rollout of trade tariffs has started to lower expectations and outlooks for the United States economy and, therefore, the stock market, there is still new hope for certain stocks inside this environment. Investors should look for some of the “tariff-free” names in this area as well as others if they want their portfolios to be safe. Reddit TodayRDDTReddit$101.76 -9.10 (-8.20%) 52-Wee ...
GOOGL vs. Reddit: Which Digital Advertising Stock is a Better Buy?
ZACKS· 2025-04-10 20:00
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 ...
Reddit Inc. (RDDT) Stock Falls Amid Market Uptick: What Investors Need to Know
ZACKS· 2025-04-02 22:55
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]
RDDT, META and SNAP Forecast – Major Stocks a Bit Quiet in Premarket
FX Empire· 2025-04-01 13:12
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].
Reddit's success may be inextricably tied to Google Search
Business Insider· 2025-04-01 08:06
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 ...
Reddit Surges 85% in a Year: Is the Stock Still Worth Buying?
ZACKS· 2025-03-25 17:55
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]
Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
ZACKS· 2025-03-19 22:55
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]