Reddit Inc. (RDDT) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.02 per share. This compares to earnings of $0.29 per share a year ago.
Reddit stock is flying in late trading after the company known for rollicking forums and "upvotes" offered some reasons for optimism about the advertising market.
For the second quarter, Reddit expects revenue of $410 million to $430 million, above analyst expectations for $391.8 million.
Reddit Inc. shares skyrocketed 18% in extended trading after the social-media platform's first-quarter daily active users, revenue and profit topped Wall Street's expectations.
RDDT's first-quarter performance shows strong ad growth, but rising competition and a premium valuation make it a risky investment ahead of earnings.
Meta (META) isn't the only social media company reporting earnings this week.
RDDT suffers from intense competition, market volatility and premium valuation, making it a risky bet for investors despite growth initiatives.
Reddit (RDDT 5.44%) went public just over a year ago, and its stock soared 562% from its IPO price of $34 to a record closing high of $225.23 this February. The social media company dazzled investors with its accelerating growth and rising profits.
Shares of Reddit (RDDT 6.21%) were moving higher this week, even though there was no news out on the social media stock. Instead, the company seemed to benefit from the broader rebound in the stock market, driven by cooling trade tensions, and gained on Friday in sympathy with a better-than-expected earnings report from Google parent Alphabet.
Super Micro Computer (SMCI 8.85%), more commonly known as Supermicro, lost more than two-thirds of its market value over the past 12 months. The server company's booming artificial intelligence (AI) business once made it a red-hot growth stock, but the bulls retreated as it struggled with accounting issues, a delayed 10-K filing, delisting threats, and regulatory subpoenas.
Reddit Inc. (RDDT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?