Latest news with #RDDT
Yahoo
3 days ago
- Business
- Yahoo
Redburn Atlantic Reiterates Sell on Reddit (RDDT) as Google's AI Search Threatens Growth
We recently published a list of . In this article, we are going to take a look at where Reddit Inc (NYSE:RDDT) stands against other AI stocks on latest news and ratings. On May 28, Redburn-Atlantic analyst James Cordwell reiterated a 'Sell' rating on Reddit Inc (NYSE:RDDT) with a $75.00 price target. Reddit is a social media platform that leverages AI to strengthen search functionality and improve user engagement. The firm's rating reiteration follows concerns regarding the impact of Google's latest AI advancements on the social media platform. Google's aggressive rollout of AI Mode has led to a boost in AI-based search experiences. This is seen as a potential threat to Reddit's user engagement and revenue growth. The analysts further stated that improvements in the tariff situation may not be enough to counter the challenges of the evolving search landscape. This is why it is increasingly cautious about how AI-driven search experiences could present significant hurdles for Reddit. This is particularly true if the platform fails to effectively adapt to such changes. 'With Google's aggressive rollout of AI Mode, the shift to AI-based search experiences appears to be accelerating. We believe this is a clear negative for Reddit, and while investor sentiment is increasingly aligning in relation to logged-out user growth, we fear there may also be underappreciated implications for logged-in users and revenue growth. With likely limited offsetting benefits from the seemingly improving tariff situation, we reiterate our Sell rating and $75 PT.' Overall, RDDT ranks 8th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
3 days ago
- Business
- Yahoo
Redburn Atlantic Reiterates Sell on Reddit (RDDT) as Google's AI Search Threatens Growth
We recently published a list of . In this article, we are going to take a look at where Reddit Inc (NYSE:RDDT) stands against other AI stocks on latest news and ratings. On May 28, Redburn-Atlantic analyst James Cordwell reiterated a 'Sell' rating on Reddit Inc (NYSE:RDDT) with a $75.00 price target. Reddit is a social media platform that leverages AI to strengthen search functionality and improve user engagement. The firm's rating reiteration follows concerns regarding the impact of Google's latest AI advancements on the social media platform. Google's aggressive rollout of AI Mode has led to a boost in AI-based search experiences. This is seen as a potential threat to Reddit's user engagement and revenue growth. The analysts further stated that improvements in the tariff situation may not be enough to counter the challenges of the evolving search landscape. This is why it is increasingly cautious about how AI-driven search experiences could present significant hurdles for Reddit. This is particularly true if the platform fails to effectively adapt to such changes. 'With Google's aggressive rollout of AI Mode, the shift to AI-based search experiences appears to be accelerating. We believe this is a clear negative for Reddit, and while investor sentiment is increasingly aligning in relation to logged-out user growth, we fear there may also be underappreciated implications for logged-in users and revenue growth. With likely limited offsetting benefits from the seemingly improving tariff situation, we reiterate our Sell rating and $75 PT.' Overall, RDDT ranks 8th on our list of AI stocks on latest news and ratings. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-05-2025
- Business
- Yahoo
Was Jim Cramer Right About Reddit, Inc. (RDDT)?
We recently published a list of . In this article, we are going to take a look at where Reddit, Inc. (NYSE:RDDT) stands against other stocks that Jim Cramer discusses. Back in 2024, on May 16, a caller asked Jim Cramer for his view on Reddit, Inc. (NYSE:RDDT), following its IPO at the time. Cramer compared it to Pinterest and expressed strong support for its relevance in the current ad ecosystem, saying: 'Reddit's easy. I've been saying buy, buy, buy. I think it's one of those companies — like Pinterest — that is now part of the bundle of what advertisers want. They are reaching the right people when you can get them. And people age up in that thing. I think it's a terrific, terrific stock. I really like Reddit.' Reddit turned out to be a winning early call, doubling with a 100.83% increase since Cramer urged buying. Reddit, Inc. (NYSE:RDDT) is finally earning Wall Street's trust as an ad platform with sticky users and growing monetization potential. Copyright: dolgachov / 123RF Stock Photo Cramer maintains the opinion that Reddit is a buy. Here's what he said on May 14, 2025: 'So many stocks have made incredible comebacks over the past few weeks, but there are still plenty of names that are way down from their highs earlier this year. Take Reddit… while the stock soared 11% today, it's off more than a hundred bucks from its February peak of $230 and change. I think it might be a buying opportunity here as long as you steel yourself for a potentially wild ride. It is a wild trader. See, two weeks ago, Reddit reported the stunning quarter, but the stock didn't get any credit for it at all… Despite initially surging 18% in after-hours trading, Reddit stock finished the next session down more than 4%… Overall, RDDT ranks 1st on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RDDT and that has 100x upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. 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
Yahoo
21-05-2025
- Business
- Yahoo
Reddit vs. Bumble: Which Social Networking Stock is a Better Buy?
Reddit RDDT and Bumble BMBL operate social networking platforms that facilitate user-generated content and community engagement, offering investors exposure to the social networking sector. RDDT serves as a vast network of communities where users can discuss a wide range of topics, while BMBL offers dating, friendship, and professional networking services, emphasizing user interaction and Mordor Intelligence report, the global social networking market size is projected to be valued at $95.33 billion in 2025, and is expected to reach $209.82 billion by 2030, witnessing a CAGR of 17.09% during the forecast period from 2025 to 2030. RDDT and BMBL are likely to benefit from the significant growth opportunity highlighted by the rapid pace of or BMBL — Which of these Social Networking stocks has the greater upside potential? Let's find out. Reddit is benefiting from the continued expansion of its advertising business, higher user engagement, and the company's growing artificial intelligence (AI) initiatives. Ad revenues increased 61% year over year to $358.6 million in the first quarter of the reported quarter, weekly active users grew 31% to 401 million, and daily active users rose 31% to 108 million, increasing engagement and ad enhanced its search capabilities, making it easier for users to find relevant content and communities. In the first quarter of 2025, Reddit Answers, RDDT's AI-powered search tool, reached one million weekly users and expanded globally, starting with Australia and the United company's expanding portfolio has been a key catalyst. In May 2025, RDDT enhanced Reddit Pro with streamlined profile setup and new tools that allow businesses to showcase community conversations. These updates make it easier for brands to build trust, connect authentically, and engage with Reddit's vast network of communities. BMBL is benefiting from enhanced user experience through new features, AI-driven personalized matching, and strong growth in its Bumble BFF friendship on this momentum, the company is investing in new features like the Discover tab, safety tools like ID verification, date review, and an upcoming coaching hub, which are designed to improve user experience and engagement. It is also investing in Bumble BFF to grow its friendship platform, expanding the brand beyond just dating. The focus on Bumble BFF has been noteworthy, as it has become a key growth area with more than one million active users, especially popular with Gen Z and young professionals, further expanding the brand's company is also rapidly enhancing its personalized matching algorithm using AI and machine learning to deliver more relevant matches, which is already showing positive early results. Moreover, BMBL is actively removing bots, scammers, and low-quality profiles while fostering a verified, trusted community. This effort increases member trust and encourages better engagement, which is critical for long-term sustainable growth. In the year-to-date period, shares of RDDT and BMBL have lost 34% and 30%, respectively. The dip in RDDT and BMBL's share price is due to the challenging macroeconomic environment. A broader market weakness in the tech sector and persistent fear over mounting tariffs have added to the pressure. Intense competition also remained a headwind. Image Source: Zacks Investment Research Valuation-wise, RDDT shares are currently overvalued as suggested by a Value Score of F. BMBL shares are trading cheap as suggested by a Value Score of terms of the forward 12-month Price/Sales, RDDT shares are trading at 9.71X, which is higher than BMBL's 0.62X. Image Source: Zacks Investment Research The Zacks Consensus Estimate for RDDT's 2025 earnings is pegged at $1.21 per share, which has increased 16.3% over the past 30 days, indicating a 136.34% rise year over year. Reddit Inc. price-consensus-chart | Reddit Inc. Quote The Zacks Consensus Estimate for BMBL's 2025 earnings is pegged at 86 cents per share, which has risen 32.3% over the past 30 days, indicating a 118.66% increase year over year. Bumble Inc. price-consensus-chart | Bumble Inc. Quote While both RDDT and BMBL stand to benefit from the booming social networking market, BMBL offers greater upside potential with stronger earnings growth, cheaper valuation, and expanding platforms beyond dating. Its focus on expanding portfolio, AI-driven personalization, and Gen Z engagement positions it well for long-term RDDT's expanding advertising business increasing international reach, and improving the user experience with upgraded search and discovery features, the company is suffering from intense competition from other social media platforms, which is consistently affecting user engagement and market share in advertising. Stretched valuation also remains a Bumble carries a Zacks Rank #2 (Buy), making the stock a stronger pick than Reddit, which has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bumble Inc. (BMBL) : Free Stock Analysis Report Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
16-05-2025
- Business
- Yahoo
RDDT Q1 Earnings Call: Advertising Growth, International Expansion, and Product Investment Shape Outlook
Online community and discussion platform Reddit (NYSE:RDDT) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 61.5% year on year to $392.4 million. On the other hand, next quarter's revenue guidance of $420 million was less impressive, coming in 1.2% below analysts' estimates. Its non-GAAP profit of $0.64 per share was 25.9% above analysts' consensus estimates. Is now the time to buy RDDT? Find out in our full research report (it's free). Revenue: $392.4 million vs analyst estimates of $369.5 million (61.5% year-on-year growth, 6.2% beat) Adjusted EPS: $0.64 vs analyst estimates of $0.51 (25.9% beat) Adjusted EBITDA: $115.3 million vs analyst estimates of $88.79 million (29.4% margin, 29.8% beat) Revenue Guidance for Q2 CY2025 is $420 million at the midpoint, below analyst estimates of $425 million EBITDA guidance for Q2 CY2025 is $120 million at the midpoint, above analyst estimates of $106.6 million Operating Margin: 1%, up from -243% in the same quarter last year Free Cash Flow Margin: 32.3%, up from 20.8% in the previous quarter Domestic Daily Active Visitors: 50.1 million, up 8.6 million year on year Market Capitalization: $20.96 billion Reddit's first quarter results were influenced by rapid growth in advertising revenue, product enhancements, and expanding international markets. Management attributed the quarter's momentum to improvements in ad targeting, new ad formats, and increasing engagement from both users and advertisers. COO Jen Wong stated the company saw "broad-based strength across objectives, channels, verticals, and geographies," notably highlighting the adoption of Reddit's dynamic product ads and machine translation features. Looking ahead, management's guidance was shaped by ongoing product investments, evolving user behavior, and anticipated variability from macroeconomic factors and changes in online search dynamics. CEO Steve Huffman acknowledged potential near-term fluctuations, citing "some bumps along the way from Google" due to ongoing algorithm changes, but emphasized that Reddit's long-term strategy remains focused on user growth, international expansion, and product development. CFO Drew Vollero reiterated the company's commitment to growing revenue at twice the rate of costs to maintain profitability. Reddit's leadership highlighted a combination of product innovation, advertiser demand, and operational discipline as the main drivers of Q1 performance. Deviations from consensus expectations were largely attributed to stronger-than-expected ad pricing and international momentum, while operational efficiency contributed to margin improvements. Advertising Platform Expansion: Reddit's advertising business saw growth across brand and performance objectives, with mid-market and SMB (small and medium-sized business) advertisers driving active advertiser growth. Over 50% year-over-year growth in active advertisers was reported, bolstered by improvements in ad solutions and measurement tools. International User and Revenue Growth: International ad revenue increased 83% year-over-year, outpacing growth in the U.S., aided by machine translation and focused market playbooks. Management emphasized that France, Spain, and Brazil are growing nearly twice as fast as other international markets. Product Enhancements: The launch and expansion of Reddit Answers (an AI-powered search tool) reached 1 million weekly users, and integration of new posting and moderation tools improved user contribution rates and content quality. Dynamic Product Ads, still in beta, delivered higher returns on ad spend and are a focus for further scaling. Operational Efficiency: Cost control remained a priority, with adjusted costs rising 19% against 61% revenue growth. Investments were concentrated in sales coverage and engineering, particularly in ad tech, machine learning, and internationalization. Data Licensing and AI Partnerships: Data licensing revenue grew 66% year-over-year as partnerships with AI companies continued. Management views ongoing deals as essential for maintaining Reddit's relevance in AI and search verticals, though renewal timelines remain uncertain. Management's outlook for the upcoming quarter and year centers on continued product enhancements, advertiser demand, and international expansion, while acknowledging platform traffic variability and macroeconomic uncertainty. Product and Ad Platform Development: Further integration of AI-powered search, improvements in ad targeting, and rollout of dynamic product ads are expected to support both user engagement and advertiser outcomes, with ongoing investment in engineering and technology. International Expansion Focus: Management is prioritizing growth in non-U.S. markets, using machine translation and localized strategies to drive user and advertiser adoption. Early results in select countries show higher growth rates than average. Search Ecosystem Volatility: Changes in search algorithms and the broader shift toward AI-generated answers may impact traffic and user acquisition in the short term. Management recognizes this as an area of potential fluctuation but remains confident in Reddit's differentiated value proposition. Ron Josey (Citi): Asked about macroeconomic impacts on ad spend and user growth given Google algorithm changes. Management acknowledged volatility but highlighted product improvements as the main driver of long-term user growth. Andrew Boone (JMP Securities): Inquired about the drivers of ad pricing increases and the evolution of Reddit Answers. COO Jen Wong pointed to enhanced advertiser outcomes and competitive pricing, while CEO Steve Huffman described plans to integrate Answers into core search functionality. Benjamin Black (Deutsche Bank): Questioned sustainability of data licensing revenue and trends in user contribution rates. Management sees ongoing AI partnerships as supportive but noted that it is too early to discuss renewals. Tom Champion (Piper Sandler): Pressed on machine translation's impact on search indexing and cost discipline despite high revenue growth. Reddit confirmed positive collaboration with Google and emphasized revenue growth outpacing cost as a guiding principle. John Colantuoni (Jefferies): Sought clarity on the main medium-term ad revenue growth drivers and progress with dynamic product ads. Management cited the scale channel, performance ad objectives, and international opportunities as key contributors. As we look to future quarters, the StockStory team will be monitoring (1) the pace of adoption and engagement with Reddit Answers and dynamic product ads, (2) international user and advertiser growth, especially in markets where machine translation and localized playbooks have been deployed, and (3) the stability of platform traffic in light of ongoing changes to search algorithms. The sustainability of data licensing revenue and the impact of new moderation and posting tools on user experience will also be important markers. Reddit currently trades at a forward EV/EBITDA ratio of 36.8×. Is the company at an inflection point that warrants a buy or sell? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
