Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?Let's take a look at what these Wall Street heavyweights have to say about Reddit Inc. (RDDT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Reddit Inc. currently has an average br ...

Reddit Inc. (RDDT) closed at $181.99 in the latest trading session, marking a -0.95% move from the prior day. The stock fell short of the S&P 500, which registered a gain of 0.53% for the day. Elsewhere, the Dow gained 0.93%, while the tech-heavy Nasdaq added 0.22%.Shares of the company have appreciated by 3.57% over the course of the past month, outperforming the Computer and Technology sector's gain of 3.02% and the S&P 500's gain of 2.69%.Investors will be eagerly watching for the performance of Reddit I ...

Core Viewpoint - Reddit's shares have surged over 7% to a record high following an upgrade from Raymond James analysts, who raised their price target to $200 from $150, citing strong international expansion potential [1][2]. Financial Performance - Reddit's third-quarter sales increased by 68% year-over-year, reaching $348.4 million, primarily driven by online advertising [3]. - The company's shares hit $191 during midday trading, surpassing a previous high of $182 [2]. International Expansion Strategy - Reddit aims to attract more users outside the U.S. to enhance its advertising business, with a focus on international markets [3]. - The company is utilizing artificial intelligence to translate site text into multiple languages, which is expected to improve local search rankings and support international growth [4]. - Fastest-growing user regions include the U.K., the Philippines, India, and Brazil, indicating significant growth opportunities outside the U.S. [4][5]. User Engagement and Monetization - Reddit generates more revenue from logged-in users compared to logged-out users, who have increased their visits due to site improvements and favorable search algorithm changes [6]. - The platform remains one of the top five most searched websites, benefiting from its unique community content [5].

Reddit (RDDT) shares have surged 134% in the trailing six-month period, outperforming the broader Zacks Computer & Technology sector’s return of 0.4% and the Zacks Internet - Software industry’s rise of 12.9%.The company has outperformed its peer, Meta Platforms (META) , which is also expanding into advertising to compete in the content and communication services market. META has returned 21.4% over the same time frame.The outperformance can be attributed to RDDT’s strong user growth, improved advertising p ...

Earnings and Analyst Estimates - The upcoming earnings release of Reddit Inc is of significant interest to investors [1] - Recent changes to analyst estimates for Reddit Inc indicate shifting near-term business trends, with upward revisions reflecting analysts' positive outlook on the company's business operations and profit generation [1] - Over the last 30 days, the Zacks Consensus EPS estimate for Reddit Inc has increased by 3.05% [2] - Reddit Inc currently holds a Zacks Rank of 2 (Buy) [2] Valuation Metrics - Reddit Inc is trading at a Forward P/E ratio of 243.91, significantly higher than the industry average of 27.61 [3] - The company's PEG ratio stands at 6.06, compared to the industry average of 2.05 [3] Stock Performance - Reddit Inc's stock closed at $164.82 in the latest trading session, marking a 0.1% increase from the previous day [6] - The stock's performance lagged behind the S&P 500's daily gain of 0.12%, while the Dow rose by 0.52% and the Nasdaq decreased by 0.23% [6] - Over the past month, Reddit Inc's stock has declined by 7.55%, underperforming the Computer and Technology sector's loss of 3.73% and the S&P 500's loss of 3.45% [6] Industry Overview - The Internet - Software industry, part of the Computer and Technology sector, currently holds a Zacks Industry Rank of 34, placing it in the top 14% of over 250 industries [7] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

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. 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. ...

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. 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. ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Reddit Inc. (RDDT) .Reddit Inc. currently has an average brokerag ...

Several positive analyst moves added up to a tailwind, pushing Reddit's (RDDT 7.13%) share price up notably in the final month of 2024. December saw the social media company's already hot stock rise by more than 16%, bolstering its status as one of the best-performing titles of the year.Impressing investors and pundits alikeReddit is one of the newer tech and social media stocks on the scene. It arrived on the market less than a year ago (in March 2024, to be exact, after completing its initial public offer ...

Stock Performance and Technical Indicators - Reddit's stock surged over 125% in the past six months, indicating strong investor optimism [1] - The stock experienced a modest 10% dip over the last month, suggesting some cooling [1] - Reddit's stock is trading at $166.47, slightly below its eight and 20-day SMAs, which may caution short-term traders [1] - The MACD indicator at 7.62 and 50-day SMA of $141.28 signal bullish momentum [2] - The RSI of 56.04 indicates the stock is consolidating for its next upward move [2] Fundamental Strengths and Partnerships - Reddit's collaboration with Google has strategically elevated its visibility in search results, driving more traffic to its forums [2] - The platform's human-driven responses are valuable for training large language models (LLMs), attracting lucrative data-scraping deals [3] Revenue Growth and Monetization Strategies - Reddit reported a 16% increase in revenue per user and 50% user base growth, showcasing effective scaling and monetization [4] - Advertising revenue is climbing, with improved margins leading to positive EPS [4] - The company plans to launch paid subreddit subscriptions and "Reddit Answers" to build additional revenue streams [4] Global Expansion and Growth Potential - Reddit's 2025 expansion into 35 countries is expected to bring millions of new users, highlighting significant growth potential [5] - The company's operational efficiency and sticky user base further bolster investor optimism [5] Long-Term Outlook and Market Positioning - Reddit is viewed as a formidable player in tech's next wave due to its AI-friendly dataset, addictiveness, and synergy with Google [6] - Despite short-term fluctuations, the platform's long-term outlook remains strong [6] - Investors consider Reddit one of the most undervalued plays in social media, with its "AI-learning goldmine" potential [7]