Company Performance - Reddit Inc. (RDDT) experienced a decline of 1.42% in its latest trading session, closing at $139.15, which was a smaller drop compared to the S&P 500's loss of 0.22% [1] - Over the past month, Reddit's shares have surged by 43.57%, significantly outperforming the Computer and Technology sector's gain of 2.98% and the S&P 500's gain of 0.45% [1] Earnings Expectations - The upcoming earnings report for Reddit is anticipated to show an EPS of $0.19, reflecting a substantial increase of 416.67% from the same quarter last year [2] - Revenue is projected to reach $426.3 million, indicating a growth of 51.61% compared to the corresponding quarter of the previous year [2] Fiscal Year Projections - For the entire fiscal year, earnings are estimated at $1.21 per share, representing a growth of 136.34% from the prior year [3] - Revenue for the fiscal year is expected to be $1.85 billion, which marks a 42.01% increase from the previous year [3] Analyst Estimates and Market Sentiment - Changes in analyst estimates for Reddit are crucial as they reflect short-term business trends, with positive revisions indicating a favorable outlook on the company's health and profitability [4] - The Zacks Rank system, which evaluates these estimate changes, currently places Reddit at a rank of 3 (Hold) [6] Valuation Metrics - Reddit Inc. is trading at a Forward P/E ratio of 117.01, which is significantly higher than the industry average Forward P/E of 27.94 [7] - The company has a PEG ratio of 3.62, compared to the average PEG ratio of 2.11 for the Internet - Software industry [7] Industry Context - The Internet - Software industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 52, placing it in the top 22% 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]
Reddit Inc. (RDDT) Sees a More Significant Dip Than Broader Market: Some Facts to Know