Reddit Inc. (RDDT) came out with quarterly earnings of $0.45 per share, beating the Zacks Consensus Estimate of $0.2 per share. This compares to a loss of $0.06 per share a year ago.
Reddit reported its second-quarter earnings on Thursday, and it's clear that the company's focus on AI has ramped up significantly.
The social-media platform's second-quarter revenue and earnings blow past Wall Street's expectations
Reddit reported second-quarter earnings on Thursday that beat on sales and guidance. The company's sales grew 78% year-over-year in the second quarter and was 17% above consensus estimates, representing the biggest beat in the company's short history as a public company.
RDDT's Q2 earnings may reflect continued advertising momentum, though stretched valuation and macroeconomic uncertainty are challenges.
Reddit's robust ad and data licensing model delivers industry-leading margins. Expect more insights about monetization progress post 2Q25 results. Disciplined cost management and a light asset model have driven profitability and exceptional liquidity, supporting continued reinvestment and financial flexibility. We forecast a 29% revenue CAGR through 2027, with double-digit ARPU and user growth, justifying a Buy rating and a target price of $175.9 (20% upside).
Reddit is an underappreciated platform with strong cultural relevance, sticky user engagement, and significant untapped monetization potential. Recent financial results show rapid revenue growth (61% YoY), improving profitability, and successful execution on advertising and data licensing strategies. Despite a high current valuation, Reddit's long-term growth prospects and margin expansion could drive shares to triple by 2030, making it a compelling buy.
The latest trading day saw Reddit Inc. (RDDT) settling at $148.13, representing a +1.39% change from its previous close.
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.
The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price.
Reddit's Q1 FY25 results far exceeded expectations, with 61% YoY revenue growth and strong margin expansion, driving upward revisions in consensus estimates. Ongoing product innovation in search and machine translation is boosting user engagement and advertising revenue, positioning Reddit for continued outperformance. Despite ambitious growth, Reddit maintains low capex and growing free cash flow, reflecting improving operational efficiency and financial health.
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