Core Viewpoint - A lawsuit has been filed against Reddit, Inc. and its senior executives for potential violations of federal securities laws, specifically related to misrepresentations about user growth impacted by Google's AI technology [1][2][3]. Group 1: Lawsuit Details - The lawsuit is pending in the U.S. District Court for the Northern District of California, titled Tamraz, Jr. v. Reddit, Inc., et al., No. 25-cv-05144 [2]. - Investors have until August 18, 2025, to request to be appointed to lead the case [2]. Group 2: Allegations Against Reddit - The complaint alleges that Reddit downplayed the negative impact of Google's AI on its user growth, which has been significant as users can find answers directly through Google without visiting Reddit [3][4]. - Reddit's user growth was reportedly affected as Google's AI technology reduced the need for users to engage with Reddit's platform [4]. Group 3: Stock Performance - Following a report on May 1, 2025, indicating a slowdown in daily active user growth, Reddit's stock price fell from $118.79 to $113.83, a decline of $4.96 or over 4% [5]. - On May 21, 2025, after an analyst cut the stock price target due to concerns over Google's AI, Reddit's stock dropped from $105.64 to $95.85, a decrease of $9.79 or over 9% [6].

Group 1 - Reddit's stock surged nearly 14% in pre-market trading, reaching $182.6 [1] - The company reported Q2 revenue of $500 million, a 78% year-over-year increase, significantly exceeding market expectations of $426 million, marking the largest positive surprise since its IPO [1] - Reddit achieved a net profit of $89 million, a substantial turnaround from a net loss of $10 million in the same period last year [1] Group 2 - For Q3, Reddit provided revenue guidance of $535 million to $545 million, which is approximately 15% above market expectations [1]

Group 1 - Reddit reported a 78% year-over-year revenue increase to $500 million for Q2 2024, exceeding analyst expectations of $425 million, marking the fastest growth in three years [1][3] - Adjusted earnings per share (EPS) reached $0.92, surpassing the expected $0.72, while net profit was $89 million, significantly higher than the average analyst forecast of $36 million [1][3] Group 2 - The company projects Q3 sales to be between $535 million and $545 million, with the midpoint significantly above Wall Street's expectation of $473 million [3] - Since its IPO in March 2024, Reddit has been investing in advertising technology to capture more market share in the digital advertising space dominated by Meta and Alphabet [3] - Analysts note that Reddit has found a way to convert user traffic into revenue, moving beyond merely accumulating users, and the future will depend on whether advertisers view Reddit as a "must-buy platform" rather than an optional choice [3]

Group 1 - Hong Kong logistics stocks saw initial gains, with ZTO Express (2057.HK) rising over 8%, JD Logistics (2618.HK) nearly 3%, and Kerry Logistics (0636.HK) over 1%. The Ministry of Transport emphasized accelerating the construction of the national comprehensive transportation network and major project development [1] - CSPC Pharmaceutical Group (1093.HK) increased over 6% after announcing an exclusive licensing agreement with Madrigal Pharmaceuticals for the development and commercialization of the oral GLP-1 receptor agonist SYH2086 [1] - Yuehai Property (0124.HK) surged over 13% following a profit warning, expecting a profit of at least HKD 260 million for the six months ending June 30, 2025, compared to a loss of approximately HKD 217 million in the same period of 2024 [1] Group 2 - NIO (9866.HK) opened nearly 9% higher, with the chairman stating that the L90 model will support profitability in Q4, which is a key target for the company [2] - Silicon material stocks rose, with Xinte Energy (1799.HK) up 6.02% and GCL-Poly Energy (3800.HK) up 4.27%, following the Ministry of Industry and Information Technology's announcement of energy-saving inspection tasks for the polysilicon industry [2] - Geek+ (2590.HK) saw a rise of over 4% after establishing a new company focused on embodied intelligence technology [2] - Zhisheng Technology Group (1159.HK) surged over 16% after announcing a profit forecast of approximately HKD 145 million to HKD 155 million for the six months ending June 30, 2025, compared to a loss of approximately RMB 11.3 million in the same period of 2024 [2] Group 3 - Prada (1913.HK) fell over 3% after a report indicated that its first-half performance was slightly below expectations, with revenues of EUR 2.74 billion, 2% lower than market expectations [3] - CloudWalk Technology (9678.HK) rose over 6% after signing a memorandum of understanding with the government of Vanuatu for AI cooperation [3] - Hong Kong photovoltaic stocks generally rose, with KSTAR (1108.HK) up over 7% and Flat Glass Group (6865.HK) up over 5%, as the industry aims to stabilize prices and increase demand [3] Group 4 - Shoulder Innovations (SI.US) debuted on the US stock market, initially rising over 7% before closing up 0.33% [4] - Western Digital (WDC.US) rose 10.16% after reporting Q2 sales of USD 2.61 billion, a 30% year-on-year increase, exceeding Wall Street expectations [4] - Align Technology (ALGN.US) plummeted 36.63% after reporting Q2 earnings that fell short of analyst expectations despite a slight year-on-year increase in adjusted earnings [4] Group 5 - eBay (EBAY.US) surged 18.3% after reporting Q2 revenue of USD 2.7 billion, a 6% year-on-year increase [5] - Arm Holdings (ARM.US) fell 13.44% due to increased R&D spending and lower-than-expected profit guidance [5] - SoFi Technologies (SOFI.US) rose 3.25% after Mizuho Bank raised its target price from USD 20 to USD 26 [5] Group 6 - Roblox (RBLX.US) rose 10.28% after reporting Q2 revenue of USD 1.08 billion, a 21% year-on-year increase [6] - Meta Platforms (META.US) increased 11.25% after reporting strong Q2 revenue and positive guidance for Q3 [6] - Amazon (AMZN.US) fell over 6% in after-hours trading despite steady growth in AWS [6]

Core Insights - Reddit reported its most profitable quarter ever, with a significant increase in stock price following the announcement of its Q2 earnings, showcasing strong growth in its advertising business [1] Group 1: Financial Performance - In Q2, Reddit's revenue grew by 78% to $500 million, marking the fastest growth rate in three years and surpassing Wall Street's expectations of $425 million [1] - Adjusted earnings per share were $0.92, exceeding the expected $0.72, while net profit reached $89 million, more than double the average analyst estimate of $36 million [1] - For Q3, Reddit anticipates sales between $535 million and $545 million, with the midpoint exceeding Wall Street's average expectation of $473 million [1] Group 2: Advertising Strategy - Since its IPO in March 2024, Reddit has been investing in advertising technology to capture more market share in the digital advertising space dominated by Meta and Alphabet [2] - The company is focusing on attracting more small and medium-sized advertisers to reduce reliance on a few large marketing clients [2] - Reddit's COO stated that the platform is seeing an increase in active advertisers, and investments in sales teams and advertising technology are proving effective [2] Group 3: User Engagement and AI Integration - Reddit's daily active users reached 110 million, a 2% increase from the previous quarter, while its AI chatbot "Reddit Answers" has 6 million weekly active users [3] - The company is leveraging its 20 years of data to develop internal products based on its AI corpus, while exploring monetization opportunities with external partners [3] - Reddit is currently involved in a legal dispute with Anthropic over allegations of unauthorized data use [3]

Core Insights - Reddit's stock surged over 17% in after-hours trading, reaching $188.34 [1] - The company reported a 78% year-over-year revenue increase to $500 million, exceeding analyst expectations of $426 million [1] - Reddit achieved a net profit of $89 million, a significant turnaround from a loss of $10 million in the same period last year [1] - Adjusted earnings per share were $0.45, surpassing the analyst forecast of $0.19 [1] - Global daily active users reached 110.4 million, a 21% year-over-year growth, slightly above the expected 109 million [1] Revenue and Profit Outlook - For Q3, Reddit anticipates revenue between $535 million and $545 million, with the midpoint exceeding market expectations of $473 million [1] - The company projects core profit (EBITDA) to be between $185 million and $195 million, compared to the market expectation of $160 million [1]

Cloud Computing - Amazon's AWS is under pressure to match Microsoft Azure's Q1 growth of 39%, as AWS delivered over 60% of Amazon's operating income last quarter with triple the company average margins [2] - Amazon plans to invest $100 billion this year, while Microsoft increased its spending to $120 billion and Alphabet to $85 billion [3] E-commerce & Tariffs - Analysts are optimistic about Amazon's ability to navigate tariff impacts, expecting positive results in third-party seller performance and online sales [4][5] - The tariff force started on April 2nd, coinciding with the second quarter [4] Cryptocurrency Market - Analysts anticipate a roughly 30% drop in retail trading volumes for Coinbase compared to the same quarter last year [8] - Analysts expect a 38% year-over-year increase in revenue from stablecoins for Coinbase [8] - Speculative retail trading slowed across centralized exchanges like Coinbase as Washington's focus shifted to tariffs, with institutional inflows into crypto ETFs and buying by crypto treasury companies supporting crypto prices [7] - The SEC wants to bring all financial markets in the US on-chain [9] Reddit's Performance - Reddit's shares have gained 42% in the past two months, with 62% of analysts having a buy rating on the stock and 34% having a hold rating [13] - Analysts expect Reddit's revenue to grow nearly 52% and earnings to swing to a 19 cent per share gain from a 6 cent per share loss in the year-ago quarter [14] - There are concerns about Reddit's dependence on Google traffic and the growing negative impact from AI search [15]

Core Insights - Reddit Inc. reported a revenue of $499.63 million for the quarter ended June 2025, marking a 77.7% increase year-over-year and exceeding the Zacks Consensus Estimate of $427.41 million by 16.9% [1] - The company's EPS for the quarter was $0.45, a significant improvement from -$0.06 in the same quarter last year, resulting in an EPS surprise of 125% compared to the consensus estimate of $0.20 [1] Financial Performance Metrics - Daily Active Uniques (DAUq) globally reached 110.4 million, surpassing the average estimate of 109.38 million [4] - Average Revenue Per User (ARPU) globally was $4.53, exceeding the estimated $3.91 [4] - DAUq in the U.S. was 50.3 million, slightly below the average estimate of 50.34 million, while international DAUq was 60.1 million, above the estimate of 59.09 million [4] - U.S. ARPU was $7.87, significantly higher than the estimated $6.72, while international ARPU was $1.73, above the estimate of $1.47 [4] - Logged-out DAUq internationally was 33.7 million, slightly above the estimate of 33.4 million [4] - Weekly Active Uniques (WAUq) globally totaled 416.4 million, exceeding the average estimate of 408.75 million [4] - Revenue from international markets was $90.8 million, surpassing the estimate of $88.58 million, while U.S. revenue was $408.8 million, significantly above the estimate of $339.76 million [4] Stock Performance - Over the past month, Reddit Inc.'s shares have returned -6.3%, contrasting with the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Reddit aims to position itself as a viable alternative to Google for online search, leveraging its unique content and community-driven knowledge [1][2] - The company reported 70 million weekly users for its core search product and 6 million users for its AI-powered search tool, Reddit Answers [2] - Reddit's Q2 revenue grew 78% year-over-year to $500 million, marking its most profitable quarter with a net income of $89 million [8] Product Development - CEO Steve Huffman announced plans to integrate Reddit's core search and Reddit Answers into a single product, enhancing user experience [3] - COO Jen Wong emphasized the importance of marketing to promote Reddit's search capabilities, aiming to shift user behavior towards utilizing its search features [3] Financial Performance - Reddit's valuation is set at $6.4 billion as it prepares for a public offering in 2024, with a reported 37% increase in daily active unique visits and nearly 50% revenue growth to $234 million [9] - The partnership with Google has allowed Reddit to enhance its search capabilities through access to Vertex AI, although concerns about reliance on Google for traffic persist [10]

Reddit Inc. (RDDT) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to a loss of $0.06 per share a year ago. These figures are adjusted for non- recurring items. This quarterly report represents an earnings surprise of +125.00%. A quarter ago, it was expected that this company would post earnings of $0.02 per share when it actually produced earnings of $0.13, delivering a surprise of +550%. Over the last four quarters, the company has ...