I expected a revenge rally for Reddit in H2 in my previous post. Since then, the stock has outperformed the S&P 500 by 7x, despite 25% down from September highs. The company delivered a 78% YoY revenue surge in Q2 with Adjusted EBITDA margin of 33%, driven by 84% growth in advertising, far exceeding management's expectations. The stock is facing volatility from declining ChatGPT citations, as it risks its positioning as a must-have AI data supplier and its leverage in signing future Licensing deals.
Reddit Inc. (RDDT) closed at $202.6 in the latest trading session, marking a -11.91% move from the prior day.
Reddit (NYSE:RDDT) shares slid 12% to close at $202.60 on Wednesday, following a 5% decline a day earlier, after data from AI search engine tracker Promptwatch showed that use of Reddit's content in AI chatbot ChatGPT had declined sharply in September. Promptwatch reported that Reddit content was cited in just 2% of ChatGPT responses on September 30, down from 9.7% during the previous month, and well off its September peak of 14%.
In the closing of the recent trading day, Reddit Inc. (RDDT) stood at $270.71, denoting a +1.59% move from the preceding trading day.
RDDT is driving growth through innovative ad solutions, automation tools, and a rapidly expanding advertiser base.
RDDT stock's growth story is fueled by surging ad revenue, rising user engagement and new tools.
Jim Cramer has been on TV for two decades, and to his fans, he's their high-energy coach who turns financial jargon into valuable information.
RDDT's unique archive of user conversations is turning into a high-margin engine for AI-fueled data licensing growth.
I rate Reddit a buy, driven by robust AI initiatives and successful international expansion, fueling strong user and revenue growth. AI-powered tools and high-profile licensing deals with Alphabet and OpenAI position Reddit as a top-cited source, boosting advertiser interest and CPC revenue. Machine translation and global market penetration are accelerating DAU growth, with international users now representing a major untapped revenue opportunity.
Reddit stock jumps nearly 50% on surging Q2 ad revenues and bullish Q3 outlook, boosted by AI and data licensing.
Zacks.com users have recently been watching Reddit Inc. (RDDT) quite a bit. Thus, it is worth knowing the facts that could determine the stock's prospects.
"Things in the stock market look really good," says Andrew Arons, but a continuation of equity strength will hinge on earnings leaping over bars Wall Street sets for companies. He expects the Mag 7 and other large-cap tech names to remain leaders due to their performance in recent months.