When markets are this volatile, it's the exact perfect time to be an active investor. I continue to individually assess every stock in my portfolio, as valuations are gyrating wildly and each company's impact from tariffs and the slowing macroeconomy will be different.With 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 to ...

Even though the technology sector in the United States has been the center of attention in recent weeks as President Trump's rollout of trade tariffs has started to lower expectations and outlooks for the United States economy and, therefore, the stock market, there is still new hope for certain stocks inside this environment. Investors should look for some of the “tariff-free” names in this area as well as others if they want their portfolios to be safe. Reddit TodayRDDTReddit$101.76 -9.10 (-8.20%) 52-Wee ...

Alphabet (GOOGL) is a behemoth in the digital advertising market in which Reddit (RDDT) is the latest challenger. Increasing deployment of AI and machine learning are driving content creation, while chatbots and virtual assistants are helping advertisers offer personalized user interactions and content personalization. These benefit both GOOGL and RDDT stocks. Both are expected to benefit from growing digital advertising spending, which, per eMarketer, expects to surpass 80% share of total ad spending in 20 ...

Nvidia, Palantir, and Reddit should survive the tariff-driven chaos.The Trump administration's "Liberation Day" tariffs against most of America's trading partners recently deflated many high-growth tech stocks. Higher tariffs, particularly against Asian countries, could strangle the supply chains of major American tech companies such as Apple and HP. Reciprocal tariffs from those markets would further throttle their overseas sales.Those headwinds will probably drive more investors toward tariff-resistant st ...

Core Insights - The recent market correction presents a buying opportunity for investors, as historically, the stock market tends to rise more than it falls Group 1: Meta Platforms - Meta Platforms has delivered over 585% returns in the last decade, supported by an annualized revenue growth of 29% [2] - The company boasts over 3.3 billion daily active users across its platforms, contributing to a revenue increase of 22% to $164 billion last year [3] - In Q4, Meta generated nearly $21 billion in net income despite spending $19 billion on expenses, with earnings per share growing 60% year over year [4] - Meta is investing in artificial intelligence, with projections of its AI assistant reaching over 1 billion users this year, which could enhance engagement and advertising growth [5] - The stock has declined 22% from recent highs due to economic concerns, but past declines have proven to be good buying opportunities, with a 375% increase since 2022 [6] - The digital ad market is a long-term growth driver for Meta, with the stock trading at 22 times this year's earnings estimate, attractive given a long-term earnings growth estimate of 17% [7] Group 2: Reddit - Reddit, following its IPO in 2024, saw its stock soar to over $200 before a 53% decline, with revenue growing 62% last year [8] - The social media ad spending is projected to reach $276 billion by 2025, presenting a significant opportunity for Reddit, which has $1.3 billion in trailing revenue [9] - Reddit's focus on community-driven content attracts users and advertisers, with logged-in users growing 27% year over year, increasing average revenue per unique user by 23% [10] - The company is beginning to explore international growth opportunities, utilizing AI to enhance content accessibility for non-English speakers [11] - The stock is trading at a price-to-sales multiple of 12, which is considered somewhat expensive, but Reddit is expected to grow into this valuation [11]

Company Performance - Reddit Inc. ended the latest trading session at $109.50, reflecting a -0.5% change from the previous close, underperforming the S&P 500's gain of 0.67% [1] - Over the past month, Reddit's shares have decreased by 30.86%, while the Computer and Technology sector and the S&P 500 have lost 7.99% and 5.28%, respectively [1] Upcoming Earnings - Reddit Inc. is expected to report earnings of $0.02 per share, indicating a significant year-over-year decline of 93.1%. Revenue is projected to be $374.53 million, representing a 54.15% increase compared to the same quarter last year [2] Full Year Projections - For the full year, earnings are projected at $1.16 per share and revenue at $1.83 billion, reflecting increases of +134.83% and +40.43% from the previous year [3] Analyst Estimates - Recent changes in analyst estimates for Reddit Inc. suggest evolving short-term business trends, with positive revisions indicating analysts' confidence in the company's performance and profit potential [4] Zacks Rank - Reddit Inc. currently holds a Zacks Rank of 1 (Strong Buy), which has historically outperformed with an average annual gain of +25% for 1 stocks since 1988 [6] Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 94.5, significantly higher than the industry's average Forward P/E of 26.68. The PEG ratio stands at 2.86, compared to the Internet - Software industry's average PEG ratio of 2 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 75, placing it in the top 31% of over 250 industries [8]

Core Viewpoint - The content emphasizes the importance of conducting personal due diligence and consulting competent advisors before making any financial decisions, particularly in the context of investments and trading [1]. Group 1 - The website provides general news, personal analysis, and third-party content intended for educational and research purposes [1]. - It explicitly states that the information does not constitute any recommendation or advice for investment actions [1]. - Users are advised to perform their own research and consider their financial situation before making decisions [1]. Group 2 - The website includes information about complex financial instruments such as cryptocurrencies and contracts for difference (CFDs), which carry a high risk of losing money [1]. - It encourages users to understand how these instruments work and the associated risks before investing [1].

Core Insights - Reddit is experiencing rapid growth but faces challenges in distinguishing itself from Google, leading to a "sell" rating from Redburn Atlantic analysts [1][2] - The growth in daily active users is primarily driven by logged-out users, which are less valuable to Reddit compared to logged-in users [2][3] - Analysts express concerns that the increase in traffic may be reaching a ceiling, indicating potential volatility in user growth due to reliance on Google [3][4] User Growth Dynamics - Reddit's logged-in daily active users increased by 27% last year, while logged-out users surged by 70% [3] - The majority of logged-out users arrive via Google Search, often seeking quick answers rather than engaging deeply with the platform [3][4] - Analysts suggest that this trend could lead to a disproportionate growth of logged-out users, which may not translate into sustainable value for Reddit [2][3] Market Reactions and Stock Performance - Reddit's stock has shown volatility, dropping over 15% after comments regarding Google's algorithm changes affected site traffic [4][5] - A brief stock surge occurred following a retracted article about a supposed partnership with Google, highlighting the sensitivity of Reddit's stock to news and market speculation [5][6] - User discussions on Reddit reflect concerns about the platform's dependency on Google for traffic, with some users noting that Google search results increasingly feature Reddit content [6]

Core Insights - Reddit (RDDT) shares have surged 85.1% over the past 12 months, significantly outperforming the broader Zacks Computer & Technology sector's return of 9.8% and the Zacks Internet - Software industry's rise of 19.4% [1][4] - The company's strong performance is attributed to robust user growth, improved advertising performance, and significant investments in AI-driven tools [2][5] User Growth and Advertising Performance - Reddit's advertising business grew 60% year over year to $395 million in Q4 2024, driven by higher impressions and more efficient ad placements [5] - Daily active users reached 101.7 million, marking a 39% year-over-year increase, with international users growing by 46% and logged-in users by 27% [7] New Tools and Features - In March 2025, Reddit introduced new tools to enhance user engagement, including post checks to prevent rule violations and post recovery features [9][10] - These updates aim to simplify posting and improve community engagement, allowing users to track post performance [10] AI-Driven Partnerships - Reddit has formed partnerships to create data and analytics products, notably with Intercontinental Exchange (ICE), leveraging its extensive data for financial industry applications [12][11] Earnings Estimates - For Q1 2025, Reddit expects revenues between $360 million and $370 million, with a Zacks Consensus Estimate of $374.53 million, indicating a year-over-year growth of 54.15% [13] Valuation and Growth Prospects - Reddit's stock is currently trading at a premium, with a forward Price/Sales ratio of 11.58, higher than its median of 9.62 and the industry's 5.22 [14][17] - The company aims to drive growth by expanding its advertising business and enhancing user experience, justifying its premium valuation [17]

Company Performance - Reddit Inc. closed at $109.91, with a decrease of -0.17% from the previous trading session, underperforming the S&P 500's gain of 1.08% [1] - The company's stock has declined by 41.16% over the past month, significantly worse than the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26% [1] Earnings Expectations - The upcoming earnings report is expected to show an EPS of $0.02, representing a 93.1% decline compared to the same quarter last year [2] - Quarterly revenue is anticipated to be $374.53 million, reflecting a 54.15% increase from the previous year [2] Full Year Projections - For the full year, earnings are projected at $1.16 per share and revenue at $1.83 billion, indicating increases of +134.83% and +40.43% respectively from the prior year [3] Analyst Projections - Recent shifts in analyst projections for Reddit Inc. should be monitored, as positive estimate revisions are seen as a favorable indicator for the company's business outlook [4] Zacks Rank and Performance - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Reddit Inc. at 2 (Buy), with a recent upward shift of 3.56% in the EPS estimate [6] - Historically, 1 ranked stocks have yielded an average annual return of +25% since 1988 [6] Valuation Metrics - Reddit Inc. has a Forward P/E ratio of 94.55, which is a premium compared to the industry's average Forward P/E of 27.36 [7] - The company's PEG ratio stands at 2.86, while the Internet - Software industry average PEG ratio is 2.06 [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 82, placing it in the top 33% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]