Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade

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]