Latest news with #RDDT
Yahoo
a day ago
- Business
- Yahoo
Reddit Inc. (RDDT) Stock Slides as Market Rises: Facts to Know Before You Trade
In the latest trading session, Reddit Inc. (RDDT) closed at $142.52, marking a -1.24% move from the previous day. The stock trailed the S&P 500, which registered a daily gain of 0.54%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 0.74%. Prior to today's trading, shares of the company had gained 2.23% lagged the Computer and Technology sector's gain of 5.77% and the S&P 500's gain of 4.2%. Analysts and investors alike will be keeping a close eye on the performance of Reddit Inc. in its upcoming earnings disclosure. The company's earnings report is set to go public on July 31, 2025. The company is predicted to post an EPS of $0.19, indicating a 416.67% growth compared to the equivalent quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $426.39 million, up 51.64% from the year-ago period. RDDT's full-year Zacks Consensus Estimates are calling for earnings of $1.21 per share and revenue of $1.85 billion. These results would represent year-over-year changes of +136.34% and +42.07%, respectively. It is also important to note the recent changes to analyst estimates for Reddit Inc. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook. Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Reddit Inc. presently features a Zacks Rank of #4 (Sell). Investors should also note Reddit Inc.'s current valuation metrics, including its Forward P/E ratio of 119.62. This valuation marks a premium compared to its industry average Forward P/E of 28.39. We can also see that RDDT currently has a PEG ratio of 3.7. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. Internet - Software stocks are, on average, holding a PEG ratio of 2.11 based on yesterday's closing prices. The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 72, which puts it in the top 30% of all 250+ industries. The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Keep in mind to rely on to watch all these stock-impacting metrics, and more, in the succeeding trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
4 days ago
- Business
- Yahoo
Reddit Facing Challenges in Ad Market: Hold or Fold the Stock?
Reddit RDDT operates a community-driven social media platform with more than 100,000 active subreddits, generating over 90% of its revenue through digital advertising. RDDT reported first-quarter revenues of $392 million, marking 61% year-over-year growth. However, Reddit continues to face pressure in a highly competitive advertising space, where scale, automation and platform maturity play a significant role in attracting ad shares have declined 10.3% year to date attributed to rising competitive pressure and a challenging macroeconomic environment following U.S. President Donald Trump's decision to levy tariffs on trading partners. Higher tariffs is expected to hurt discretionary spending negatively impacting ad spending. The stock has underperformed both the broader Zacks Computer & Technology sector and the Zacks Internet Software industry, which have appreciated 7.5% and 14%, respectively, over the same period. Image Source: Zacks Investment Research Reddit operates within an increasingly competitive digital advertising environment dominated by established technology platforms. Meta Platforms META and Alphabet GOOGL control substantial portions of the global digital advertising market, possessing sophisticated advertising infrastructure and extensive advertiser relationships that Reddit cannot easily match. Meta Platforms continues to expand its advertising capabilities across Facebook, Instagram and WhatsApp through enhanced cross-platform integration. The company's Ads Manager enables businesses to manage marketing strategy across all platforms, with AI systems optimizing advertising budgets across placements. Meta Platforms plans to introduce Business AI for personalized product recommendations and advanced WhatsApp business messaging dominates search advertising while strengthening its market position through AI-powered advertising solutions. The company's AI Overview and Circle to Search features enhance user engagement, making its advertising inventory more valuable to marketers. Reddit's advertising technology remains less sophisticated than Meta Platforms and Alphabet, with limited measurement tools and targeting options, potentially affecting its ability to compete for advertiser budgets. Reddit shares are overvalued, as suggested by the Value Score of F. In terms of forward 12-month P/S, RDDT stock is trading at 12.67X compared with the Zacks Internet - Software industry's 5.71X. The stock is expensive than competitors, including Meta Platforms and of META and GOOGL are currently trading at P/S ratios of 9.1 and 6.36, respectively. Image Source: Zacks Investment Research For 2025, the Zacks Consensus Estimate for revenues is pegged at $1.85 billion, indicating year-over-year growth of 42.07%. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The consensus mark for Reddit's 2025 earnings is pegged at $1.21 per share, unchanged over the past 30 days. The figure marks an improvement over 2024's loss of $3.33 per share. Reddit has continued expanding its platform to support advertiser adoption and user activity. Reddit Answers, an AI-powered search tool, reached one million weekly users in the first quarter and launched in Australia and the U.K., with plans for deeper integration into core search. Dynamic Product Ads received updates aimed at onboarding larger product catalogs and improving machine learning models. Reddit Pro usage has more than doubled, supported by integration with Google Tag Manager to streamline tracking and support campaign-level May 2025, Reddit introduced Reddit Community Intelligence, a tool that analyzes real-time discussions to generate marketing insights across categories like gaming and tech. Other updates included AI-powered feed ranking and guided contribution flows to encourage user participation. These changes are part of ongoing efforts to modify user experience and expand advertiser-facing engagement has been driving user growth for RDDT. Daily Active and Weekly Active Uniques both increased 31% year over year and reached 108.1 million and 401 million, respectively, in the reported quarter. The Zacks Consensus Estimate for Daily Active and Weekly Active Uniques is pegged at 110.15 million and 407.56 million, respectively, for the second quarter. Reddit's growing product suite, building user engagement and strong partner ecosystem offer long-term promise. The platform's AI-powered tools and expanding international reach demonstrate potential for sustainable growth in the evolving digital advertising given RDDT's premium valuations, intensifying competition and broader market uncertainties, near-term gains may be limited. The company's current trading multiples exceed industry standards while facing formidable competitors with superior resources and infrastructure. Combined with macroeconomic headwinds and the stock's recent underperformance, these factors create a cautious environment, which may limit near-term upside. Reddit currently carries a Zacks Rank #4 (Sell), suggesting that investors should avoid the stock at current can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Alphabet Inc. (GOOGL) : Free Stock Analysis Report Meta Platforms, Inc. (META) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Reddit Launches AI-Powered Ad Optimization Tools with New ‘Optimization Score'
Reddit Inc. (NYSE:RDDT) is one of the best new stocks to buy now. On July 1, Reddit introduced new, automated ad tips within its Ad Manager platform. These new recommendations are designed to help advertisers optimize their ad spending by providing personalized and data-driven suggestions based on a systematic analysis of Reddit ad responses and the advertiser's content. One of the features of this update is the Optimization Score that offers a summary assessment of an advertiser's approach to Reddit ads. Each recommendation contributes to this score, with a higher score indicating better optimization according to Reddit's best practices. If an advertiser's score falls below 80/100, the platform will provide actionable tips to refine their ad setup. A close up of a user's hand scrolling through a mobile social media application. Reddit states that 88% of people now utilize the platform to help make buying choices. A portion of this engagement comes through Google searches, where Reddit results often receive priority, especially as users increasingly add Reddit to their search queries to find more authentic and community-driven insights amidst generalized AI results. Reddit Inc. (NYSE:RDDT) is a digital community that provides a platform to enable users to engage in conversations, explore passions, research new hobbies, and exchange goods & services. While we acknowledge the potential of RDDT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Why Reddit Stock Jumped 34% in June
Key Points Reddit got a boost after introducing its new Community Intelligence product at the Cannes Lions festival. One analyst also said Meta Platforms' deal with Scale AI is positive for Reddit stock. The company has delivered impressive growth since it went public a year ago. Shares of Reddit (NYSE: RDDT) were on a tear last month, as the stock benefited from the broader gains in the stock market, the company released a new Community Intelligence product that impressed the market, and other positive news around artificial intelligence (AI) helped lift the stock. According to data from S&P Global Market Intelligence, the stock finished the month up 34%. As you can see from the chart, most of the stock's gains came in the middle of the month, though it also benefited from a late surge in the broad market as tensions in the Middle East cooled. RDDT data by YCharts Reddit rides the AI wave The big news around Reddit last month was its introduction of Reddit Community Intelligence, which it unveiled at the Cannes Lions Festival. The new platform, which the company described as the "collective knowledge from the billions of human conversations across Reddit," has two main features. The first is Reddit Insights, a tool that gives marketers real-time insights based on Reddit's 20 years of conversations to help them plan campaigns and make better decisions. The second is Conversation Summary Add-ons, an ad feature that integrates positive content from Reddit users directly below an advertiser's post. Both products are only in alpha, meaning they're being tested by a small group of customers right now, but the initiative shows Reddit doing more to tap into its trove of user-generated content, which can fuel both AI and the company's own advertising engine. The stock jumped 19.4% over a three-day period during the Cannes festival. Elsewhere, the company received some bullish analyst commentary around Meta's acquisition of Scale AI, which could raise the premium for the kind of data-licensing business that Reddit is trying to build with its "corpus," or body of content. What's next for Reddit? Reddit stock has exploded since its IPO last March, as the company has both delivered strong growth and turned profitable. Reddit had previously been operating at a loss for much of the 20 years prior to going public, and a combination of factors seem to be driving the business, including its utility in the AI era, interest in an alternate social media advertising platform, and attention around the company following its IPO. The excitement around the new Community Intelligence tool shows that investors seem to believe in the company's potential with AI and advertising. It's unclear if that will move the bottom line anytime soon, but Reddit is a unique asset in its industry. The stock is risky, but it has considerable upside potential. Should you invest $1,000 in Reddit right now? Before you buy stock in Reddit, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $692,914!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $963,866!* Now, it's worth noting Stock Advisor 's total average return is1,049% — a market-crushing outperformance compared to179%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 30, 2025
Globe and Mail
03-07-2025
- Business
- Globe and Mail
Reddit to Announce Second Quarter 2025 Results on Thursday, July 31, 2025
Reddit, Inc. (NYSE: RDDT), announced today that the company's second quarter 2025 financial results will be released after market close on Thursday, July 31, 2025. Reddit will host a conference call to discuss its results at 2 p.m. PT / 5 p.m. ET the same day. The live webcast of the conference call and related earnings materials can be accessed at Reddit's Investor Relations website at and investor relations subreddit r/ RDDT. A replay of the webcast will also be available following the call at the same websites. Reddit will solicit questions from the community at r/RDDT on Thursday, July 31, 2025, and post responses following the earnings call at Reddit's Investor Relations website at and investor relations subreddit r/RDDT. About Reddit, Inc. Reddit is a community of communities. It's built on shared interests, passion, and trust, and is home to the most open and authentic conversations on the internet. Every day, Reddit users submit, vote, and comment on the topics they care most about. With 100,000+ active communities and 108+ million daily active unique visitors, Reddit is one of the internet's largest sources of information.
