Core Viewpoint - Reddit's stock is experiencing a decline despite the company reporting strong financial results, leading to discussions on Wall Street regarding the future trajectory of the social media platform [1]. Financial Performance - Reddit has released a positive set of financial results, which typically would bolster investor confidence; however, the stock is still falling [1]. Market Reaction - The market's reaction to Reddit's earnings report is mixed, with analysts and investors debating the implications of the results for the company's future [1].

Financial Performance - Reddit reported fourth-quarter revenue of $725.61 million, exceeding the consensus estimate of $665.44 million [1] - The company posted fourth-quarter earnings of $1.24 per share, surpassing analyst estimates of 95 cents per share [1] Future Outlook - Reddit expects first-quarter revenue to be in the range of $595 million to $605 million, compared to estimates of $577.17 million [2] - The company anticipates first-quarter adjusted EBITDA of $210 million to $220 million [2] Market Reaction - Following the earnings announcement, Reddit shares fell 2.2% to trade at $147.76 [3] - Analysts adjusted their price targets on Reddit after the earnings report [3]

Core Viewpoint - Reddit reported strong fourth quarter earnings, exceeding expectations in user and ad growth, but experienced a mixed market reaction with its stock price fluctuating post-earnings announcement [1][2][3]. Financial Performance - Reddit's earnings per share (EPS) was $1.24, surpassing the expected $0.94 [3]. - Revenue reached $726 million, a 70% increase year-over-year, also beating expectations [4]. - For the first quarter of 2026, Reddit projected sales between $595 million and $605 million, higher than market expectations, with earnings projected between $210 million and $220 million, exceeding the estimate of $203 million [4]. Analyst Ratings and Price Targets - Guggenheim raised its price target for Reddit from $245 to $255, maintaining a buy rating, citing strong revenue and profit growth [6]. - Several analysts lowered their price targets, but all remain significantly above the current trading price of $145. For instance, Evercore ISI reduced its target from $320 to $290, while Oppenheimer lowered it from $300 to $250 [7][9]. - Caner Fitzgerald lowered its price target to $170 from $240, maintaining a neutral rating, indicating strong growth but cautioning on user growth trajectory [10][11]. Market Reaction - Despite the strong earnings report, Reddit's stock initially rose but then fell by 4%, indicating a mixed market sentiment [1][2]. - Analysts noted that the downward movement in stock price may be influenced by sector-wide deratings, with many firms adjusting their targets due to broader market conditions [8][12].

Core Insights - Reddit (RDDT) reported fourth-quarter 2025 earnings of $1.24 per share, exceeding the Zacks Consensus Estimate by 29.30%, compared to earnings of 36 cents per share in the same quarter last year [1] - Revenues reached $725.6 million, surpassing the Zacks Consensus Estimate by 8.71%, and reflecting a year-over-year increase of 69.7% [1] - RDDT shares rose 7.60% in pre-market trading following the strong quarterly results [1] Revenue Breakdown - U.S. revenues, which account for 80% of total revenues, increased by 67.8% year over year to $583.3 million [2] - International revenues, making up 20% of total revenues, surged 77.9% year over year to $142.3 million [2] - Advertising revenues grew by 75% year over year to $690 million, while Other revenues rose by 8% year over year to $36 million [2] User Engagement Metrics - Daily Active Uniques (DAUq) increased by 19% year over year to 121.4 million, with U.S. DAUq up 9% to 52.5 million and International DAUq up 28% to 68.9 million [3] - Weekly Active Uniques (WAUq) rose by 24% year over year to 471.6 million, with U.S. WAUq increasing by 12% to 193.4 million and International WAUq climbing 34% to 278.2 million [3] Average Revenue Metrics - Average revenue per unique (ARPU) increased by 42% year over year to $5.98, with U.S. ARPU rising by 53% to $10.79 and International ARPU climbing by 38% to $2.31 [4] Operating Performance - Reddit reported a GAAP gross margin of 91.9%, a decrease of 70 basis points year over year [5] - Sales and marketing expenses surged by 103.5% year over year to $163.9 million, while research and development expenses rose by 5.4% to $198.9 million; General and Administrative expenses decreased by 2% to $72.3 million [5] Financial Metrics - Adjusted EBITDA for the fourth quarter was $327 million, up from $154.3 million in the same quarter last year, with an adjusted EBITDA margin of 45.1% [6] - As of December 31, 2025, Reddit had cash and cash equivalents of $2.47 billion, up from $2.22 billion as of September 30, 2025 [7] - The company generated $269 million in cash from operating activities in the fourth quarter, compared to $185 million in the previous quarter, and reported free cash flow of $263.6 million, up from $183 million in the previous quarter [7] Q1 2026 Guidance - For the first quarter of 2026, Reddit expects revenues between $595 million and $605 million and adjusted EBITDA between $210 million and $220 million [10]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive's news team delivers insights across various sectors including 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]

Market Overview - U.S. stock futures advanced following a sharp sell-off, with major benchmark indices showing positive movement [1] - The 10-year Treasury bond yielded 4.20%, while the two-year bond was at 3.48%, indicating market expectations for interest rates [2] Company Performance - Roblox Corp. (NYSE:RBLX) surged 14.41% after beating earnings estimates in its fourth-quarter report [4] - Amazon.com Inc. (NASDAQ:AMZN) dropped 8.39% in premarket trading after reporting mixed fourth-quarter results, maintaining a weaker price trend [5] - Reddit Inc. (NYSE:RDDT) jumped 11.22% after announcing better-than-expected fourth-quarter results and a strong sales forecast [5] - Strategy Inc. (NASDAQ:MSTR) increased by 6.98% after reporting fourth-quarter revenue and EPS that beat analysts' estimates, despite a weaker price trend [5][6] Sector Insights - Consumer discretionary, materials, and information technology stocks recorded the biggest losses, while consumer staples and utilities closed higher [7] - Analysts maintain a resilient outlook for the U.S. economy, expecting steady growth and moderating inflation, with opportunities in sectors like Financials, Industrials, and Utilities [8] Commodities and Global Markets - Crude oil futures rose by 1.44% to around $64.20 per barrel, while gold prices increased by 1.72% to approximately $4,862.74 per ounce [10] - Bitcoin traded 7.86% higher at $65,760.87 per coin, reflecting positive sentiment in the cryptocurrency market [10] Global Market Performance - Asian markets closed mixed, with India's Nifty 50 and Japan's Nikkei 225 rising, while other indices like Hong Kong's Hang Seng and China's CSI 300 fell [11]

Market Overview - Major U.S. stock indexes closed lower, with the Dow Jones Industrial Average down 1.2% to 48,908.72, the S&P 500 falling 1.2% to 6,798.40, and the Nasdaq dropping 1.59% to 22,540.58 [1] Amazon - Amazon's stock closed down 4.42% at $222.69, with an intraday high of $226.31 and a low of $220.38; the stock's 52-week range is between $258.60 and $161.43; in after-hours trading, the stock crashed nearly 11% to $198.21 [2] IREN Ltd - IREN's shares dropped 11.46% to close at $39.79, with an intraday high of $44.92 and a low of $38.90; the stock's 52-week high and low are $76.87 and $5.12, respectively; in after-hours trading, the stock plummeted 18.37% to $32.48 [3] - IREN reported a sharp second-quarter loss, missing earnings estimates with an EPS of -$0.52 versus expectations for a -$0.18 result; revenue rose to $71.21 million year over year [4] Roblox Corp - Roblox saw a decline of 3.96%, closing at $60.57, with an intraday high of $64.84 and a low of $60.07; the stock's 52-week range is $150.59 to $50.10; the stock gained 7.3% to $65 in extended trading [5] Reddit Inc - Reddit's stock fell 1.07% to $151.05, with an intraday high of $155.34 and a low of $148.50; the stock's 52-week range is $282.95 to $79.75; the stock gained 4.55% to $157.92 in after-hours trading [6] Strategy Inc - Strategy's shares plummeted 17.12% to $106.99, with an intraday high of $122 and a low of $104.17; the stock's 52-week high and low are $457.22 and $104.16 [7]

Core Viewpoint - Reddit reported strong fourth-quarter earnings, exceeding analyst expectations in both revenue and net profit, which led to a nearly 4% increase in after-hours trading [1] Financial Performance - Revenue for the fourth quarter increased by 70% year-over-year to $726 million, surpassing analyst expectations of $665 million [1] - Net profit rose nearly 255% year-over-year to $252 million, with earnings per share of $1.24, exceeding the expected $0.94 [1] User Engagement - Global daily active users (DAUs) grew by 19% year-over-year to 121 million, also above the analyst forecast of 120 million [1] Shareholder Returns - The company announced a $1 billion share repurchase program, indicating confidence in its financial position and future growth [1] Future Outlook - For the first quarter, Reddit expects sales to be between $595 million and $605 million, with adjusted earnings projected to be between $210 million and $220 million, both exceeding expectations [1]

Core Insights - Reddit Inc. reported a revenue of $725.61 million for the quarter ended December 2025, marking a year-over-year increase of 69.7% and exceeding the Zacks Consensus Estimate by 8.71% [1] - The earnings per share (EPS) for the same period was $1.24, compared to $0.36 a year ago, resulting in an EPS surprise of 29.3% over the consensus estimate of $0.96 [1] Financial Performance - Reddit's shares have declined by 40.2% over the past month, while the Zacks S&P 500 composite has increased by 0.5% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance against the broader market in the near term [3] Key Metrics - Daily Active Users (DAUq) globally reached 121.4 million, surpassing the average estimate of 120.04 million [4] - Average Revenue Per User (ARPU) globally was $5.98, exceeding the average estimate of $5.59 [4] - U.S. DAUq was 52.5 million, slightly above the average estimate of 52.05 million [4] - International DAUq was 68.9 million, also exceeding the average estimate of 67.99 million [4] - U.S. ARPU was $10.79, higher than the estimated $10.05 [4] - International ARPU was $2.31, surpassing the estimate of $2.02 [4] - Logged-in DAUq globally was 50.7 million, below the average estimate of 51.65 million [4] - Weekly Active Users (WAUq) globally reached 471.6 million, exceeding the average estimate of 456.07 million [4] - Revenue from international markets was $142.3 million, representing a year-over-year increase of 77.9% and surpassing the average estimate of $139.58 million [4] - Revenue from the United States was $583.3 million, reflecting a year-over-year increase of 67.8% and exceeding the average estimate of $529.94 million [4]

Core Insights - Reddit's AI-powered search engine is viewed as a significant business opportunity, with potential to impact revenue despite not being monetized yet [1] - The company believes generative AI search will outperform traditional search for many queries, particularly those requiring multiple perspectives [1][2] - Weekly active users for search increased by 30% over the past year, from 60 million to 80 million, while AI-powered Reddit Answers grew from 1 million to 15 million users [2] Product Development - Reddit is modernizing its AI answers interface to include more media-rich responses, with pilot programs already in progress [3] - The company plans to merge its AI search feature with traditional search to enhance user experience, having made significant progress in this unification [5] User Engagement and Personalization - Starting in Q3 2026, Reddit will eliminate the distinction between logged-in and logged-out users to personalize the site using AI and machine learning [4] - The content licensing business, which allows other companies to train their AI models on Reddit's data, is also growing, contributing to non-ad revenue [5] Financial Performance - Reddit's "other" revenue, which includes content licensing, increased by 8% year-over-year to $36 million in Q4 and rose 22% to $140 million for the year 2025 [5]