Reddit (RDDT) reported fourth-quarter earnings that topped analysts' estimates, but its user growth fell short, sending shares lower in extended trading Wednesday. The social media platform saw revenue grow 71% year-over-year to $427.7 million, topping the analyst consensus compiled by Visible Alpha. Net income came in at $71 million, up from $18.5 million a year ago and above expectations. However, Reddit’s 101.7 million daily active users in the period fell short of the 103.24 million analysts were looki ...

Daily Active Uniques ("DAUq") increased 39% year-over-year to 101.7 million Fourth Quarter Revenue grew 71% year-over-year to $427.7 million Gross margin reached 92.6% for the fourth quarter and 90.5% for the full year Fourth Quarter Net income of $71.0 million, 16.6% of revenue. Diluted EPS of $0.36 Fourth Quarter Adjusted EBITDA of $154.3 million, 36.1% of revenue 1 Fourth Quarter Operating cash flow of $90.0 million. Fully diluted shares of 206.2 million, down sequentially SAN FRANCISCO, Calif. – Februar ...

Reddit Inc RDDT is set to report its fourth-quarter earnings on Wednesday. Wall Street expects 25 cents in EPS and $405.26 million in revenues as the company reports after market hours.The stock is up 331.23% over the past year, 31.1% year-to-date.Reddit’s Rally Faces A Musk-Sized Distraction Ahead Of Q4 EarningsAs Reddit gears up for its fourth-quarter earnings, tensions with billionaire Elon Musk are escalating. Musk accuses Reddit of enabling threats against his employees (Musk owns, or co-owns, Tesla, S ...

Core Insights - Reddit (RDDT) is expected to report fourth-quarter earnings with anticipated revenue growth of 64% year-over-year, reaching $408.92 million, and earnings of $47.6 million, significantly up from $18.53 million in the same quarter last year [1] - Analysts project an increase in daily active users to 103.24 million, up from 73.10 million a year ago [1] Analyst Ratings and Price Targets - Among 11 analysts tracking Reddit, eight have a "buy" rating while three have a "hold" rating, with an average price target of approximately $206, indicating a 9% decline from the recent closing price of $224.93 [2] - The stock has increased nearly 40% since the beginning of the year, surpassing most targets set in January [2] Price Target Upgrades - Deutsche Bank raised its price target for Reddit to $235 from $195, citing potential revenue growth from increased daily active users and advertising revenue [3] - The introduction of Reddit Answers, an AI tool for summarizing posts, is expected to enhance advertising revenue by attracting search budgets through promoted links [3] Growth Potential - Morgan Stanley highlighted that Reddit could leverage multiple growth opportunities by 2025, including a partnership with Alphabet's Google to direct searches to Reddit links [4] - A larger user base spending more time on the platform would make Reddit more appealing to advertisers, potentially aligning its ad pricing with competitors like Google and Meta Platforms [4] Stock Performance - Reddit's shares experienced slight changes after reaching an all-time high, with the stock price increasing nearly sevenfold from its IPO price of $34 in March 2024 [5]

Core Viewpoint - Reddit is expected to report its fourth-quarter 2024 results on February 12, with anticipated revenues between $385 million and $400 million, while the Zacks Consensus Estimate stands at $408.01 million [1][2]. Revenue and Earnings Estimates - The consensus estimate for earnings is 24 cents per share, which has increased by one cent in the past 30 days [2]. Factors Influencing Performance - Increased ad sales and growing AI initiatives are expected to positively influence Reddit's fourth-quarter performance [3]. - The advertising business is experiencing strong growth across various objectives, channels, verticals, and geographies, with solid growth anticipated from mid-market and SMB customers [4]. AI and Advertising Innovations - Reddit's AI-driven tools, such as auto bidding and expanded ad offerings, have enhanced ad performance and contributed to growth in the fourth quarter [5]. - New features like Reddit Pro tools are designed to help businesses reach their audience more effectively, which is expected to increase user engagement [6]. Ad Solutions and Sector Performance - The company is refining its ad solutions, particularly in the middle and lower funnel, which has seen strong performance and increased adoption by advertisers, driving revenue growth from sectors like auto, consumer goods, financial services, and pharmaceuticals [7]. - Reddit's international user base is expanding, particularly in regions like France, India, and the Philippines, aided by machine translation efforts [8]. Stock Performance - RDDT shares have appreciated 329.9% over the trailing six-month period, significantly outperforming the Zacks Computer & Technology sector's return of 13.6% and the Zacks Internet - Software industry's 38.6% rally [9][10]. Competitive Positioning - Reddit has outperformed its peer, Meta Platforms, which gained 38.5% over the same period, although RDDT's valuation is considered stretched with a forward Price/Sales ratio of 21.65X compared to the industry's 3.31X [11]. Partnerships and User Engagement - Partnerships with companies like Alphabet enhance content discovery and community engagement, benefiting both Reddit and its partners [13]. - The testing of "Reddit Answers," an AI-powered chatbot, is expected to significantly enhance user engagement and retention [14][15]. - Collaboration with Integral Ad Science strengthens Reddit's advertising position by providing trusted transparency and advanced measurement tools [16]. Growth Prospects and Market Conditions - Reddit's strong portfolio and expanding partner base indicate promising long-term growth prospects, reflected in its Growth Score of A [19]. - The company is monitoring potential impacts from upcoming elections and macroeconomic uncertainties that may affect ad revenue and user engagement [20].

I recently joined The REIT Forum and if you are looking for more investment ideas like this one, get them exclusively at The REIT Forum with access to our subscriber only portfolios.I last wrote about Reddit (NYSE: RDDT ) at the end of December, where I reiterated my “buy” rating with a price target of $205. My bullish thesis was predicated on my observation that the company saw no signs of slowdownAmrita runs a boutique family office fund in beautiful Vancouver, where she leads the investment strategy for ...

Group 1 - Reddit (NYSE: RDDT) was identified as a significant winner in the previous year, although profits were taken prematurely [1] - The initial investment thesis for Reddit was based on the observation that the company appeared under-monetized, with clear near-term growth potential [1] - The investment strategy involves identifying undervalued companies with secular growth, focusing on those with strong balance sheets and management teams in sectors with long growth runways [1] Group 2 - The investing group Best Of Breed Growth Stocks, led by Julian, emphasizes positions in stocks with a high probability of delivering substantial alpha relative to the S&P 500 [1] - The group combines growth-oriented principles with strict valuation hurdles to enhance the conventional margin of safety [1] - Features of the investment group include exclusive access to high-conviction stock picks, comprehensive research reports, real-time trade alerts, macro market analysis, and community engagement with Julian [1]

I’m a stock analyst with an MBA and a background in healthcare, bringing years of experience as a Registered Nurse dedicated to patient care. I've had the privilege of sharing my insights on Seeking Alpha since 2017. I am most interested in identifying underlying assumptions in stock valuations by emphasizing financial modeling techniques like DCF analysis. I then provide scenario-based forecasts to help readers gauge reasonable outcomes. I am influenced by books like Superforecasting and Antifragile. As su ...

Forget the hype behind AI stocks like Nvidia ( NVDA ) and Palantir ( PLTR ): One of the fiercest rallies over the past year has been that in Reddit, Inc. (NYSE: RDDT ), the social media company. RDDTWith 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 today. He has been a regular contributor on Seeking Alpha since 2017. He ...

Over the course of 2024, the S&P 500 index generated a return of 17.7%. That represented an above-average year for the benchmark index. By contrast, however, shares of Reddit (RDDT 7.70%), which debuted on the stock market in March 2024, advanced 262%, and are up another 18% so far in 2025.I predict that in 2025, Reddit will once again beat the market. Here's why. Understanding Reddit's business modelFirst, let's get a grip on what Reddit does and why its shares rose over the last 10 months.Reddit is a soci ...