Latest news with #RDDT
Associated Press
3 days ago
- Business
- Associated Press
Deadline Soon: Reddit, Inc. (RDDT) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)--Aug 15, 2025-- The Law Offices of Frank R. Cruz reminds investors of the upcoming August 18, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired Reddit, Inc. ('Reddit' or the 'Company') (NYSE: RDDT ) securities between October 29, 2024 and May 20, 2025, inclusive (the 'Class Period'). IF YOU ARE AN INVESTOR WHO LOST MONEY ON REDDIT, INC. (RDDT), CLICKHERETO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT. What Happened? On May 1, 2025, after market hours, Reddit released its first quarter 2025 financial results, marking a third consecutive quarter with slowdown in daily active user growth. On this news, Reddit's stock price fell $4.96, or 4.2%, to close at $113.83 per share on May 2, 2025, thereby injuring investors. Then, on May 19, 2025, Wells Fargo analysts downgraded Reddit's stock, stating that Google's AI features would likely cause 'permanent' disruptions to user traffic for Reddit, and that traffic to Reddit from Google Search would continue to decline and ultimately hurt Reddit's advertising revenue. On this news, Reddit's stock price fell $5.24, or 4.6%, to close at $107.99 per share on May 19, 2025. Then, on May 21, 2025, Baird analysts downgraded Reddit's stock, citing similar concerns as Wells Fargo. On this news, Reddit's stock price fell $9.79, or 9.3%, to close at $95.85 per share on May 21, 2025, thereby injuring investors further. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) changes in Google Search's algorithm and features like AI Overview were causing users to stop their query on Google Search; (2) these algorithm changes were materially different than prior instances of reduced traffic to the Reddit website; (3) Defendants were aware that the increase in the query term 'Reddit' on search engines was because users were getting the sought after answer from Google Search without having to go to Reddit, and not because they intended to visit Reddit; (4) this zero-click search reality was dramatically reducing traffic to Reddit in a manner the Company was unable to overcome in the short term; (5) Defendants, therefore, lacked a reasonable basis for their outlook on user rates and advertising revenues; and (6) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired Reddit securities between October 29, 2024 and May 20, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is August 18, 2025. Contact Us To Participate or Learn More: If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us: Frank R. Cruz The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 Email us at: [email protected] Call us at: 310-914-5007 Visit our website at Follow us for updates on Twitter: If you inquire by email, please include your mailing address, telephone number, and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. View source version on CONTACT: The Law Offices of Frank R. Cruz, Los Angeles Frank R. Cruz, 310-914-5007 [email protected] KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: CLASS ACTION LAWSUIT PROFESSIONAL SERVICES LEGAL SOURCE: The Law Offices of Frank R. Cruz Copyright Business Wire 2025. PUB: 08/15/2025 01:22 PM/DISC: 08/15/2025 01:22 PM
Yahoo
10-08-2025
- Business
- Yahoo
Why Reddit Stock Skyrocketed This Week
Key Points Reddit reported its second-quarter results on July 31, and the stock has been on a tear since then. Reddit's sales and earnings are rising rapidly. Data licensing for artificial intelligence models has turned into a powerful growth driver for Reddit. 10 stocks we like better than Reddit › Reddit (NYSE: RDDT) stock continued to rocket higher in this week's trading thanks to strong quarterly results. The social media player's price rose 14.2% over the last week of trading. Reddit published its second-quarter report on July 31, and the results spurred a surge in bullish momentum that extended into this week's trading. The company's share price is now up roughly 308% over the last year of trading. Reddit stock roars higher on big Q2 beats Reddit's second-quarter report arrived with results that caused investors to adopt a far more bullish stance on the company's outlook. In Q2, Reddit reported a profit of $0.45 per share on sales of $500 million. The performance came in far better than the average analyst estimate, which had targeted earnings per share of $0.19 and revenue of $426 million. The company's sales increased 78% year over year in the period, and the strong performance beats caused a wide range of Wall Street analysts to significantly increase their one-year price targets on the stock. With excitement surrounding Reddit's future growing, strong post-earnings valuation gains continued over the last week of trading. What's next for Reddit? For the current quarter, Reddit expects its sales to come in between $535 million and $545 million. Hitting the midpoint of that guidance range would mean posting year-over-year sales growth of roughly 55% in the third quarter. Reddit is seeing strong sales and earnings momentum in conjunction with data generated from its platform being a go-to resource for the training of artificial intelligence (AI) models. While the platform's user base has historically monetized at relatively low levels compared to other social sites, data licensing for AI models seems to have changed the game. 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 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025 Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Reddit Stock Skyrocketed This Week was originally published by The Motley Fool 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
10-08-2025
- Business
- Yahoo
Is Reddit Stock a Buy After Its Most Profitable Quarter Ever?
Key Points Many social media platforms with large user bases fail to effectively attract advertising demand. Reddit is growing users and improving monetization, which is leading to parabolic growth. 10 stocks we like better than Reddit › On July 31, social media platform Reddit (NYSE: RDDT) reported its most profitable quarter ever, with net income of $89 million. This boosted its trailing-12-month net income to $216 million, a monumental turnaround from one year ago, when its trailing-12-month net loss was more than $500 million. And it looks like the company is just getting started. It's so tempting to dismiss Reddit stock as overvalued today. It's up more than 500% since it went public last year. That said, it is delivering on something very important -- something that many other promising technology companies have failed to show investors. And it's why Reddit stock could be a buy. Understanding the digital advertising space There are many platforms that seek to monetize large user bases with advertising. And the opportunity for parabolic growth is enticing. Think of it this way: Imagine a platform that has one million users but can grow to 10 million users. If it's generating $1 in advertising revenue per user and can keep generating $1 in the future, then this is a 10x opportunity, which is great on its own. However, if this same platform can simultaneously go from generating $1 per user to $10 per user, then this is a 100x opportunity. This is what I mean when I say that there's an enticing parabolic growth opportunity in digital advertising: When both the user base and the monetization rate increase, the growth can be absolutely top tier. Unfortunately for investors, many promising advertising businesses haven't lived up to hopes. Take Snap for example. It reported financial results for the second quarter of 2025 on Aug. 5, showing a 10% year-over-year drop for the pricing of its ads. To be sure, its user base has grown nicely over the years. But Snap's monetization has consistently disappointed. The same could be said of other businesses outside of the social media space, including connected-TV business Roku. For its part, it doesn't break out monetization metrics as nicely, leaving investors to read between the lines. But in the company's recent second quarter, its platform revenue was up 18.3% year over year, whereas the number of hours streamed on Roku's devices was up 17.6%. At first glance, this looks good for Roku: Its revenue growth outpaced the number of hours people watched TV. But not all of Roku's platform revenue is advertising revenue; there are other things that contribute to the total. Accounting for contributions from other revenue sources, it seems that Roku's ad pricing also slipped in spite of ongoing growth in its user base. But Reddit is another growth story altogether. Why Reddit stock is worth a look In the second quarter of 2025, Reddit had 110 million daily active unique individual visitors, or "uniques," on its platform, which was up a nice 21% from the same quarter of 2024. But the company's average revenue per unique was up a whopping 47% to $4.53. Granted, some of this was due to growth in impressions -- visitors were shown more ads than in the past. But management confirmed that ad pricing was also up. Ideally, management would have told investors how much ad pricing was up by. That would paint a clearer picture. But even though the image is blurry, investors can still see clearly enough to know that Reddit is succeeding where other promising tech companies have faltered: Ad pricing is going up. The end result is parabolic growth: In the second quarter, Reddit's revenue was up a stunning 78% year over year to $500 million. Not only is the growth rate stunning, it's also been accelerating for almost two years now. In other words, it's actually living up to lofty expectations. Management has also done a commendable job of keeping expenses in check lately. Consequently, the second quarter was the company's most profitable quarter ever. Looking at Reddit stock now, it trades at nearly 24 times sales. Generally speaking, that's considered expensive. But it may be reasonable for long-term investors for three reasons. First, Reddit is an extremely high-margin business, with a second-quarter gross margin of nearly 91%. It deserves a high sales valuation for this reason alone. Second, the company's growth is superb, as mentioned. If it can keep better monetizing its audience, then it can grow into its pricey valuation. Third, it still has a lot of room to improve its monetization. Consider that it has over 400 million weekly users -- this is one of the biggest platforms in the world. And it's still generated less than $1.7 billion in revenue over the last year, much lower than similarly scaled social media platforms such as Pinterest. Reddit is executing well, and the stock could still be reasonably priced for investors with a five-year outlook. For these reasons, I believe the stock is a buy after its most profitable quarter ever. Should you buy stock 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 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 $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 182% 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 August 4, 2025 Jon Quast has positions in Roku. The Motley Fool has positions in and recommends Pinterest and Roku. The Motley Fool has a disclosure policy. Is Reddit Stock a Buy After Its Most Profitable Quarter Ever? was originally published by The Motley Fool
Yahoo
09-08-2025
- Business
- Yahoo
Reddit Stock Pops After a Blowout Quarter, But Is It a Buy?
Key Points Reddit is growing quickly and it posted revenue of $500 million in the second quarter. Although the stock is up 260% in the last year, there are valuation concerns. 10 stocks we like better than Reddit › Two weeks ago, I wrote that Reddit (NYSE: RDDT) was one of my picks as a stock to buy on the dip and hold for the next decade. I was confident in the company's upcoming earnings report and its growing profits. Fast-forward to today, and Reddit is smoking hot, up 43% in the last week on the strength of its glowing second-quarter filing. The dip is over, but do you still have an opportunity to take a position in Reddit stock? Or should you wait for a better buying opportunity? Reddit shows huge numbers The biggest figure in the second-quarter earnings report is rapid revenue growth. Reddit reported $500 million in revenue, up 78% from a year ago, marking its fastest quarterly growth since 2022. It was the company's most profitable quarter. There was also a 21% increase in daily active users, a number that reached 110 million in the quarter. The company posted a profit of $89 million and $0.48 per share, versus losses of $10 million and $0.06 per share in the second quarter of 2024. Reddit stands out from social media platforms like Meta Platforms' Facebook and Instagram because, by design, its users are anonymous. The platform is organized into structured "subreddit" communities where people can talk about anything -- including their favorite games, cars, and movies, as well as current events. Because subreddits can be devoted to very specific topics, conversations are usually on point and user moderators can halt any spam or threads going off-topic. "For people, conversation and connection are becoming more valuable and rare," CEO Steve Huffman wrote in a letter to investors. "In a world increasingly dominated by algorithms and automation, the need for human voices has never been greater. We see this every day as nearly 50 million scrollers come to Reddit for their favorite communities, and 60 million seekers land on Reddit in search of better answers to their questions." The company posted Q3 guidance for revenue of between $535 million and $545 million, which would be a 55% gain from a year ago. What's next for Reddit? While Reddit gets more than 80% of its revenue from the U.S., it's taking steps to grow its international presence. The company is embracing machine translation in order to allow Reddit to expand in Asia, Europe, and Latin America, and is currently targeting around two dozen languages. By expanding internationally, Reddit has the opportunity to increase marketing, add local content and contributors, and create specialized subreddits to serve international markets. While international revenue increased by 71% to $91 million in the second quarter, this is a massive opportunity to grow the company. Reddit is also embracing artificial intelligence (AI) to make its platform more relevant. The Reddit Answers tool is an AI search engine specifically geared toward Reddit content and can help people find answers on the platform. The company says its core search product has 70 million weekly users, and that Reddit Answers grew from 1 million users in Q1 to 6 million in Q2. By rolling Reddit Answers out globally, it can sell advertising in its search engine much as Alphabet's Google does. Should you invest in Reddit stock? By any measure, Reddit is an expensive stock, particularly compared to Meta, which operates the highly successful platforms Facebook, Messenger, Instagram, Threads, and WhatsApp. It's also more expensive than Snap, which operates the Snapchat platform: While I still think that holding Reddit stock is a good idea, I do think it's pretty pricey right now. Up 260% in the last year, Reddit appears to be overvalued; if I were buying a social media stock at these prices, I would lean toward Meta right now. I have full confidence that Reddit will hit its third-quarter revenue numbers, and I'm eager to see if it can increase its international audience and open the door for long-term revenue growth. Reddit is a solid stock, but I think investors should wait for a better buying opportunity before taking a position. Do the experts think Reddit is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Reddit make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,060% vs. just 182% for the S&P — that is beating the market by 877.64%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!* The 10 stocks that made the cut could produce monster returns in the coming years. 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 August 4, 2025 Patrick Sanders has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Meta Platforms. The Motley Fool has a disclosure policy. Reddit Stock Pops After a Blowout Quarter, But Is It a Buy? was originally published by The Motley Fool 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
08-08-2025
- Business
- Yahoo
Jim Cramer Says 'Reddit's Got A Lot More Room to Run'
Reddit, Inc. (NYSE:RDDT) is one of the stocks on Jim Cramer's radar. During the episode, Cramer recommended 'sticking' with the company stock, as he said: 'I gotta tell you, I think Reddit's got a lot more room to run. I'm not kidding. This one's been a huge winner for us. I've been following the company closely ever since it came public early last year and started recommending it about a year and a half ago, when it was trading around 50. I thought Reddit had tremendous growth… amazing digital advertising business because it's basically the last bastion of the old school internet… Reddit kept running for the next couple of months, peaking at $230 in January, then it plummeted all the way back down to around 80 bucks at its post Liberation Day lows in April. brett-jordan-0FytazjHhxs-unsplash Reddit (NYSE:RDDT) operates an online platform where users create and participate in interest-based communities to share content, exchange ideas, and engage in discussions. 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 best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
