Core Insights - Reddit Inc. has seen a significant stock performance increase of +49.5% over the past month, outperforming the S&P 500 composite's +1.7% and the Zacks Internet - Software industry's +1.9% [1] Earnings Estimates - Reddit Inc. is projected to report earnings of $0.49 per share for the current quarter, reflecting a year-over-year increase of +206.3% [4] - The consensus earnings estimate for the current fiscal year is $1.81, indicating a change of +154.4% from the previous year [4] - For the next fiscal year, the consensus earnings estimate is $3.04, representing a +68.5% change from the prior year [5] - Over the last 30 days, the consensus earnings estimate has increased by +54.9% for the current quarter and +49.6% for the current fiscal year [4][5] Revenue Growth - The consensus sales estimate for the current quarter is $549.59 million, which indicates a year-over-year change of +57.8% [10] - For the current fiscal year, the revenue estimate is $2.04 billion, reflecting a +57.2% change, while the next fiscal year's estimate is $2.72 billion, indicating a +33.1% change [10] Recent Performance - In the last reported quarter, Reddit Inc. achieved revenues of $499.63 million, a year-over-year increase of +77.7% [11] - The company reported an EPS of $0.45, compared to -$0.06 a year ago, and exceeded the Zacks Consensus Estimate for revenues by +16.9% [11] - Reddit Inc. has consistently beaten consensus EPS and revenue estimates over the last four quarters [12] Valuation - Reddit Inc. is rated F on the Zacks Value Style Score, indicating it is trading at a premium compared to its peers [16] - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued or undervalued [14][16] Conclusion - The Zacks Rank 1 for Reddit Inc. suggests potential outperformance against the broader market in the near term [17]
Reddit Inc. (RDDT) is Attracting Investor Attention: Here is What You Should Know