Core Insights - Reddit (RDDT) is expected to report third-quarter 2025 revenues between $535 million and $545 million, reflecting a year-over-year growth of 54% to 56% with a midpoint of 55% [1] - The Zacks Consensus Estimate for revenues stands at $549.69 million, indicating a year-over-year growth of 57.80% [2] - Earnings per share are estimated at 52 cents, showing a significant year-over-year growth of 225% [2] Revenue Drivers - Increased ad sales and growing AI initiatives are anticipated to positively influence Reddit's third-quarter performance [3] - The advertising business is benefiting from innovations in ad products, automation, and tools like Reddit Insights and Community Add-Ons, which are expected to enhance advertiser performance [3][4] - Reddit Answers has seen substantial growth, with weekly users increasing from 1 million to 6 million, contributing to improved ad revenues [4] International Expansion - Reddit's international expansion, supported by machine translation in 23 languages, is a key growth driver, reaching new markets in Asia, Europe, and Latin America [5] Competitive Landscape - Reddit shares have increased by 34.2% year-to-date, outperforming the Zacks Computer & Technology sector and the Zacks Internet - Software industry [7] - Compared to peers like Meta Platforms, Pinterest, and Snap, Reddit has shown stronger performance in the advertising space [8] Stock Valuation - RDDT is trading at a premium with a forward Price/Sales ratio of 15.46X, significantly higher than the industry average of 5.63X and its peers [11] - The company's expanding portfolio has driven a 47% year-over-year increase in ARPU to $4.53, indicating effective monetization strategies [13] Product Innovations - The introduction of Dynamic Product Ads and automation tools has attracted more advertisers, enhancing campaign performance and ARPU [14] - New features like Reddit Pro and Community Intelligence tools have improved user engagement and brand interaction [16] Future Outlook - Reddit's prospects are bolstered by an expanding advertising business, a growing client base, and enhanced user experience through upgraded features [20]

Analyst Ratings & Price Target Changes - Intel saw multiple firms raise price targets after Q3 earnings beat, with Benchmark setting a high target of $50 per share [2] - Deckers Outdoor experienced price target cuts from Raymond James and Telsey Advisory Group due to weak 2026 sales forecast [3] - Citizens upgraded eBay to outperform, citing improved consumer experience in key categories [4] - Steeple raised eBay's price target to $89, just below the average 12-month target of roughly $92 [5] - Bank of America upgraded Zion's Bank Corp to neutral, raising its price target to $62 per share, seeing room for a rebound [8][9] - UBS cut Madna's price target to $40 from $70 after a failed vaccine trial, but maintains a buy rating [9] - Wedbush trimmed Netflix's price target to $1400 from $1500, but maintained outperform rating, implying roughly 13% upside [12] - Morgan Stanley upgraded 3M to equal weight, raising its price target to $160 from $130 [13][14] - Wedbush raised Snowflake's price target to $270 from $250, anticipating growth from AI use cases [21] - Goldman Sachs upgraded Darden Restaurants to buy, citing improved value proposition and less exposure to lower-income consumers [22] Company Specific Insights - Morgan Stanley maintains outperform rating on Tesla with a $410 price target, highlighting robo taxi potential and calling Tesla a "forgotten AI stock" [7] - Bank of America expects Meta's Q3 sales of $50 billion and earnings of $730% a share, driven by AI-powered ad engine [16] - UBS is staying neutral on Starbucks, trimming its price target to $94 a share, expecting flat US theme store sales and operating margins around 10% [17][18] - City added Reddit to its positive 90-day catalyst watch, raising its price target to $250 from $220, expecting third quarter earnings to come in significantly above expectations [19] - BNB Paraba upgraded Lululemon to neutral, noting the stock is down more than 50% year to date and negative catalysts are less clear [20]

Industry Overview - The technology sector is experiencing strong growth driven by the adoption of Artificial Intelligence (AI), Generative AI (GenAI), and Agentic AI, alongside the digitalization wave fueled by AI and cloud computing [1] - There is a rising demand for high-bandwidth and low-latency networks (5G), as well as hardware components such as GPUs, AI accelerators, memory chips, and data center infrastructure [1][3] Earnings Outlook - Several technology stocks are expected to report quarterly results soon, with a focus on four companies: Meta Platforms (META), Reddit (RDDT), InterDigital (IDCC), and AMETEK (AME), which are well-positioned to exceed earnings estimates [2] - Meta Platforms anticipates third-quarter 2025 ad revenues of $48.5 billion, reflecting a 21.6% year-over-year growth, with earnings expected at $6.60 per share, indicating a 9.45% increase from the previous year [10][11] - Reddit projects revenues between $535 million and $545 million for the third quarter of 2025, suggesting a 57.8% year-over-year growth, with earnings expected at 52 cents per share, representing a 225% increase from the prior year [14] - InterDigital expects third-quarter earnings between $1.52 and $1.72 per share, with a consensus estimate of $1.79 per share, indicating a 9.8% growth year-over-year [16][17] - AMETEK forecasts mid-single-digit percentage growth in overall sales year-over-year, with adjusted earnings expected between $1.72 and $1.76 per share, reflecting a 4-6% increase from the previous year [19] Investment Trends - The demand for data center capacity is increasing due to escalating AI needs, prompting major cloud providers like Amazon, Alphabet, Microsoft, and Meta Platforms to invest significantly in AI-related infrastructure [4] - The semiconductor industry is witnessing robust growth, with semiconductor sales reaching $64.9 billion in August 2025, a 21.7% increase year-over-year [5] - The PC segment also saw growth, with IDC estimating 75.8 million units sold in the third quarter of 2025, up 9.4% year-over-year [6]

Group 1 - Proactive provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2][3] - The news team covers key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] - Proactive focuses on medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [2][3] Group 2 - The team delivers news and insights across various sectors including biotech, pharma, mining, natural resources, battery metals, oil and gas, crypto, and emerging technologies [3] - Proactive adopts technology to enhance workflows and improve content production [4][5] - All content published by Proactive is edited and authored by humans, ensuring adherence to best practices in content production and search engine optimization [5]

Core Viewpoint - Reddit is suing Perplexity AI and three other companies for allegedly scraping posts from its platform on an industrial scale, claiming violations of copyright laws and unfair competition [1][4][12]. Group 1: Allegations and Legal Actions - Reddit accuses Perplexity AI of using data scrapers to unlawfully obtain content from its site, seeking unspecified damages [4][5]. - The lawsuit also targets data scraping partners, including Oxylabs UAB, AWMProxy, and SerpApi, which Reddit describes as entities employing dubious tactics to access its data [5][6]. - Reddit previously filed a similar complaint against Anthropic in June, indicating a pattern of legal action against companies it believes are infringing on its rights [4]. Group 2: Responses from Defendants - Perplexity AI has denied the allegations, claiming that Reddit is engaging in extortion [8][13]. - SerpApi and Oxylabs have also refuted the claims, asserting their commitment to their business practices and readiness to defend against the lawsuit [10][11]. Group 3: Impact on AI Development - Reddit's content is increasingly cited as a primary source for AI-generated responses, with the platform noting that its posts have become crucial for training AI chatbots [11]. - Following a cease-and-desist letter from Reddit, Perplexity's use of Reddit's content reportedly increased significantly, tripling "forty-fold" [12].

Core Points - Reddit has filed a lawsuit against AI startup Perplexity and three other companies for illegally scraping its data to train an AI-based search engine [1][2] - The lawsuit highlights the ongoing legal battles between content owners and tech companies over the use of copyrighted material for AI training [1] - Reddit claims that Perplexity's data usage has increased fortyfold since a cease-and-desist letter was sent last year [2] Group 1 - Reddit accuses Perplexity and other companies of bypassing data protection measures to steal data necessary for its "answer engine" system [1] - The lawsuit is part of a broader trend where content owners are taking legal action against companies that misuse their data for AI training [1] - Reddit's Chief Legal Officer stated that AI companies are engaged in a "data laundering" economy to acquire quality human content [1] Group 2 - Reddit claims that companies like Oxylabs, AWMProxy, and SerpApi have scraped its data without permission [2] - SerpApi and Oxylabs have expressed their intention to vigorously defend against Reddit's allegations [2] - Reddit is seeking unspecified monetary damages and an injunction to prevent Perplexity from using its data [2]

Core Viewpoint - Reddit has filed a lawsuit against Perplexity for allegedly scraping user posts to train its AI model, highlighting ongoing tensions between content owners and the AI industry [1][3]. Group 1: Allegations and Defendants - Reddit claims that Perplexity, along with three other entities, illegally extracted its copyrighted content by disguising their identities and web scrapers [2]. - The defendants named in the lawsuit include Oxylabs, AWMProxy, and SerpApi, which Reddit accuses of assisting in the data collection process [1][2]. Group 2: Industry Context - This lawsuit is part of a broader trend where content owners are taking legal action against AI firms for using copyrighted material without permission to train large language models [3]. - Reddit has previously initiated a similar lawsuit against AI startup Anthropic, indicating its proactive stance in protecting its content [3]. Group 3: Reddit's Position and Strategy - Reddit's Chief Legal Officer stated that AI companies are engaged in an "arms race for quality human content," leading to a "data laundering" economy where scrapers steal data to sell to clients [4]. - The lawsuit claims that user posts from Reddit have become a primary source for AI-generated answers on Perplexity, with citations increasing forty-fold after a cease-and-desist letter was sent [5]. Group 4: Licensing Agreements - Reddit has been leveraging its data pool by allowing access only through AI-related licensing agreements, having signed deals with OpenAI and Alphabet's Google [6]. - Perplexity argues that it does not train AI models on Reddit content but merely summarizes public discussions, claiming that licensing agreements are therefore unnecessary [6][7]. Group 5: Financial Implications - AI licensing deals with Google and OpenAI reportedly account for nearly 10% of Reddit's revenue, emphasizing the financial significance of data licensing for the company [8].

Core Points - Reddit has filed a lawsuit against Perplexity AI and three data scraping firms for unauthorized harvesting of its content [1][3] - The lawsuit highlights the increasing tensions between online platforms and AI developers regarding data usage [1][4] Company Actions - The lawsuit names Perplexity AI, Oxylabs UAB, AWMProxy, and SerpApi as defendants, accusing them of collecting and reselling Reddit data without consent [3] - Reddit's Chief Legal Officer stated that the lawsuit reflects a broader challenge in the industry, emphasizing the competition for high-quality human-generated text [4] Industry Context - Reddit's data has become essential for training generative AI models, with the company already having paid licensing agreements with OpenAI and Google [5] - The lawsuit is part of Reddit's strategy to assert ownership over its data amid the AI industry's demand for training resources [6] Legal Implications - The case could set a precedent for how U.S. courts interpret the legality of web-scraped content used in AI model training [7] - Legal experts suggest that this lawsuit is part of a larger trend of disputes that are shaping data governance and compliance in the tech industry [7]

Core Points - Social media platform Reddit has filed a lawsuit against artificial intelligence startup Perplexity and three other companies for allegedly scraping its data unlawfully to train their AI models [1] Group 1 - Reddit accuses Perplexity and the other companies of violating its terms of service by using its data without permission [1] - The lawsuit highlights concerns over data privacy and the ethical use of user-generated content in AI training [1] - This legal action reflects a growing trend among social media companies to protect their data from unauthorized use by AI firms [1]

Core Insights - Reddit's lawsuit reveals a network of start-ups that scrape Google's search results and sell this data to AI companies [1] Group 1 - The lawsuit highlights the existence of an ecosystem that capitalizes on Google's search data [1] - Start-ups involved in this ecosystem are focused on data aggregation for AI applications [1] - The practice raises questions about data ownership and the ethical implications of scraping [1]