Reddit Inc. RDDT has been riding a bullish wave, surging 338.46% in the past year, 33.30% year-to-date, and 23.22% over the past month.
Reddit's stock has surged 22% since December, outperforming the S&P 500 by 17x, as I was bullish on its strong Advertising and Data Licensing growth and expanding margins. Its Q3 FY24 saw revenue of $348.4M, a 68% YoY increase, with Advertising Revenue contributing 90% and Data Licensing growing 547% YoY due to new partnerships. Despite risks like global liquidity and tariffs, Reddit's consistent earnings beats and raised guidance justify a new price target of $275, a 32% upside.
Reddit has surged nearly 200% since I named it a high-conviction pick, driven by generative AI-powered translations and impressive revenue growth. The company has shown a knack for crushing guidance and consensus estimates by wide margins. Tech stocks look bubbly again, and it's time for another look at Reddit stock.
Reddit's Q3 showed strong growth (revenue +68% Y/Y, DAUq +47%), turning profitable with $29.9M net income. AI data licensing contributed $33.2M, marking a new revenue stream. While the AI training data market could reach $8B by 2030, RDDT's potential 5% share ($400M) faces risks from competition, user backlash, and contract uncertainties. DCF analysis reveals that the current $35B valuation implies an unsustainable 40% annual revenue growth over nine years. Even with a 25% FCF margin, it still needs 30% growth.
Reddit Inc. (RDDT) reachead $199.55 at the closing of the latest trading day, reflecting a +0.31% change compared to its last close.
Kian Sadeghi, Nucleus Founder & CEO, and Alexis Ohanian, Reddit Co-founder and Seven Seven Six founder, join 'Closing Bell Overtime' to talk Nucleus' DNA testing and utilizing AI in gene editing.
Reddit, Inc.'s stock has surged over 4x in the past year, but its valuation is now unsustainable, prompting my downgrade to a sell rating. Reddit has soared to an ~18x forward revenue multiple, twice the valuation of Meta. The company could see a deceleration in revenue growth as its U.S. user base saturates, and as its international push leads to lower ARPUs.
Over the course of 2024, the S&P 500 index generated a return of 17.7%. That represented an above-average year for the benchmark index.
Growth stocks usually don't look like bargains on the surface. Arm Holdings (ARM -2.43%) and Reddit (RDDT 0.23%) are certainly pricey, but both have unique advantages that bode well for the future.
For many people in the community, Reddit is the gift that keeps on giving.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
The latest trading day saw Reddit Inc. (RDDT) settling at $181.99, representing a -0.95% change from its previous close.