Welcome back to Fast Market on the Schwab network. I'm Diane Kinghaul alongside Kevin Hinks over at the SIBO. Time now for our cash tag segment taking a look at Reddit.For that, we want to bring in our next guest. We've got Andy Swan, co-founder of Likefolio. Uh they always come with the great data, sentiment data showing uh what their channel checks look like.All right, Andy. So, you've got some new data on Reddit. The stock is lower today, but it's been an outperformer year to date, up more than 40% this ...

Key Points Reddit stock is up more than 60% so far this year, and it outperformed Nvidia across the stretch. Reddit's valuation surged in conjunction with strong sales growth, driven by data licensing for AI applications. Reddit looks poised to continue scoring wins with data licensing for large language model (LLM) applications. 10 stocks we like better than Reddit › Reddit (NYSE: RDDT) stock has been on a tear this year. The social media platform and news aggregator's share price has rocketed 62 ...

Reddit, Inc. (NYSE:RDDT) is one of the Must-Watch AI Stocks on Wall Street. On September 16, Oppenheimer analyst Jason Helfstein raised the price target on the stock to $300 from $215 while maintaining an Outperform rating. The firm cited higher estimates and multiple behind the price target raise. Similarweb regression has revealed that Q3 US logged-in daily average users 0.8M/1.1M above Opco/Street. The metric is considered a primary driver of Reddit’s revenue. Meanwhile, Quarter-to-date ad portal visit ...

Core Insights - Reddit, Inc. (NYSE:RDDT) has demonstrated significant growth, with a 78% year-over-year increase in revenue, reaching $500 million in Q2 2025 [2] - The company has seen a 21% year-over-year rise in Daily Active Uniques (DAUq), totaling 110.4 million [2] - Top executives have sold substantial amounts of stock, with the COO selling $7.84 million and the CFO selling $6.5 million [2] - Analysts have raised the stock's price target, with Oppenheimer increasing it from $215 to $300 and Jefferies from $230 to $300, reflecting strong confidence in the company's growth potential [3] - Since its IPO on March 21, 2024, Reddit's stock has grown by 473.13% [3] Company Overview - Reddit, Inc. is a social news aggregation and discussion platform founded in 2005 and headquartered in California [4] - The company's business model is based on user-generated content, organized into various communities known as "subreddits" [4]

Core Viewpoint - Reddit (NYSE: RDDT) has demonstrated its ability to achieve significant top- and bottom-line growth despite initial skepticism surrounding its public market debut [1] Group 1: Company Performance - The stock has shown aggressive growth "at will," indicating strong operational capabilities [1] - Reddit's performance has defied doubts from analysts and investors, suggesting resilience in its business model [1] Group 2: Analyst Insights - Julian Lin, a financial analyst, focuses on identifying undervalued companies with long-term growth potential, emphasizing the importance of strong balance sheets and management teams [1]

Core Viewpoint - Reddit Inc. is experiencing significant growth in both stock performance and earnings projections, indicating strong investor interest and positive market sentiment. Group 1: Stock Performance - Reddit Inc. shares closed at $270.71, reflecting a +1.59% change from the previous day's closing price, outperforming the S&P 500's daily gain of 0.48% [1] - Over the past month, Reddit's stock has gained 22.03%, surpassing the Computer and Technology sector's gain of 5.46% and the S&P 500's gain of 2.46% [1] Group 2: Earnings Projections - Reddit Inc. is projected to report earnings of $0.5 per share, representing a year-over-year growth of 212.5% [2] - The consensus estimate for quarterly revenue is $549.69 million, which is an increase of 57.8% from the same period last year [2] - Full-year estimates predict earnings of $1.82 per share and revenue of $2.05 billion, indicating year-over-year changes of +154.65% and +57.36%, respectively [3] Group 3: Analyst Estimates and Rankings - Recent changes in analyst estimates for Reddit Inc. reflect positive sentiment regarding the company's business operations and profit generation capabilities [4] - The Zacks Rank system, which incorporates estimate changes, currently ranks Reddit Inc. as 1 (Strong Buy), indicating strong expected performance [6] - Over the past month, there has been a 0.78% rise in the Zacks Consensus EPS estimate for Reddit Inc. [6] Group 4: Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 146.48, which is significantly higher than the industry average of 31.99 [7] - The company holds a PEG ratio of 4.19, compared to the Internet-Software industry's average PEG ratio of 2.27, suggesting a premium valuation relative to expected earnings growth [8] Group 5: Industry Context - The Internet-Software industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 68, placing it in the top 28% of over 250 industries [8] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1][2]. Company Overview: Reddit Inc. (RDDT) - Reddit Inc. currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [3][4]. - The stock has shown significant price increases, with shares up 88.08% over the past quarter and 318.58% over the last year, outperforming the S&P 500, which increased by 10.66% and 18.43% respectively [7]. Price Performance - Over the past week, RDDT shares increased by 5.95%, while the Zacks Internet - Software industry rose by only 0.23% [6]. - The monthly price change for RDDT is 22.03%, compared to the industry's 7.2% [6]. Trading Volume - RDDT's average 20-day trading volume is 5,058,259 shares, indicating a bullish sign as the stock is rising with above-average volume [8]. Earnings Outlook - In the past two months, 11 earnings estimates for RDDT have been revised upwards, with no downward revisions, boosting the consensus estimate from $1.21 to $1.82 [10]. - For the next fiscal year, 11 estimates have also moved upwards without any downward revisions [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, RDDT is positioned as a promising momentum pick for investors [12].

Core Insights - Reddit (RDDT) is experiencing significant growth in average revenue per user (ARPU), which increased by 47% year over year to $4.53 in Q2 2025, driven by enhanced advertising options and performance improvements for advertisers [1][10] - The company's advertising revenues surged by 84% year over year to $465 million in Q2 2025, largely due to new ad formats, automation, and measurement tools [1][10] Advertising Performance - Key drivers of advertising growth include the adoption of Dynamic Product Ads, which yield an average return on ad spend that is twice as high as standard conversion campaigns [2] - Reddit's focus on automation, including auto-bidding and integration with third-party tools like Smartly, facilitates easier scaling and optimization for advertisers, likely attracting more advertisers and further boosting ARPU [2] Advertiser Base Expansion - The active advertiser count grew by over 50% year over year in Q2 2025, indicating a broadening appeal across large, mid-market, and small businesses, which could sustain future ARPU growth [3] International Growth - Reddit's international expansion is crucial for ARPU growth, with machine translation available in 23 languages, allowing the platform to reach new markets in Asia, Europe, and Latin America. International ARPU rose by 40% year over year to $1.73 in Q2 2025 [4] Competitive Landscape - Reddit faces stiff competition from platforms like Pinterest (PINS) and Snap (SNAP), which are also expanding their advertising capabilities in the growing digital ad market [5] Stock Performance - RDDT shares have gained 63.1% year to date, outperforming the broader Zacks Computer & Technology sector's return of 20.4% and the Internet - Software industry's appreciation of 24.2% [8] Valuation Metrics - RDDT is considered overvalued, with a forward 12-month Price/Sales ratio of 19.72X compared to the Computer & Technology sector's 6.98X, and it has a Value Score of F [11] Earnings Estimates - The consensus estimate for 2025 earnings is $1.82 per share, reflecting a 154.65% year-over-year growth, with a recent increase of one cent in the past 30 days [13]

Core Viewpoint - Reddit's stock (RDDT.US) surged over 4.7%, reaching a historic high of $279.2, driven by ongoing negotiations with Google for a new content licensing agreement [1] Group 1: Company Developments - Reddit is in preliminary talks with Google to establish a new round of content licensing agreements, aiming to secure higher revenue from its data [1] - The previous content licensing agreement with Google, established about a year and a half ago, was reportedly valued at approximately $60 million [1] - The discussions focus on integrating Reddit's data more deeply into Google's AI products, highlighting the increasing importance of Reddit's data in search results and generative AI training [1]

Group 1 - Piper Sandler has raised the target price for Reddit (RDDT.US) from $210 to $290 [1]