Latest news with #RedditInc
Yahoo
2 days ago
- Business
- Yahoo
Reddit's (RDDT) Rollercoaster Ride Enters Buy-the-Dip Territory
Reddit Inc. (RDDT) stock has been on a wild ride since its IPO last March, soaring from $34 to a dizzying $230 before pulling back at $103 today. The bullish moment has been fueled by Reddit's jaw-dropping growth, tempered by whispers of doubt about whether it can keep the momentum going. I'm betting it can. With its unique platform and skyrocketing metrics in both the top and bottom lines, I see Reddit's dip as a rare chance to buy into a social media giant poised for a big rebound. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Reddit's strength lies in its vibrant, sticky community. In Q1, daily active users (DAUs) on the platform hit 108.1 million, a 31% year-over-year increase, while weekly users totaled 401 million. Millions of people are now exploring all kinds of subreddits for everything from niche hobbies to breaking news. I would argue that, along with X, Reddit is one of the best places to go to feel the pulse of what the 'conversation' is for any given topic. In the meantime, Reddit's 'Reddit Answers' feature, now at 1 million weekly users, has made it easier for people to find solutions, boosting engagement and keeping users hooked longer. This should prove to be a strong short to medium-term catalyst for Reddit to sustain sticky user metrics. And this stickiness translates into real staying power. The platform's ability to connect users over hyper-specific interests creates a network effect that's hard to replicate. As more users join, the content becomes richer, attracting even more people. It's a virtuous cycle that drives growth and makes it a magnet for advertisers seeking to tap into passionate, engaged audiences. Speaking of Reddit's advertising business, it is firing on all cylinders, with Q1 ad revenue soaring 61% to $359 million. I really like how Reddit's ads are sneaky but effective. You're deep in a thread about camping gear, and suddenly there's a sponsored post for a tent that fits the conversation perfectly. That's a superb delivery system that has advertisers lining up. Notably, over 50% more advertisers joined the platform year-over-year, indicating that brands view Reddit as a valuable channel for delivering high return on ad spend (ROAS). Reddit's data has emerged as a highly valuable asset, and the company is beginning to effectively monetize it. In the last quarter, revenue from data licensing and related sources rose by 66% to $34 million. This growth is largely driven by the increasing demand for high-quality, user-generated content to train artificial intelligence models. Reddit's extensive and diverse dataset, covering a wide range of topics, makes it particularly well-suited for this purpose. Additionally, Reddit's partnership with Google (GOOGL), aimed at enhancing the platform's visibility in search results, has significantly increased its online presence. As a result, Reddit content is now more prominently featured in searches ranging from consumer advice to home repair solutions. Looking ahead, this revenue stream is likely to become a more significant part of Reddit's overall business. As AI technologies continue to evolve, the value of Reddit's comprehensive dataset is expected to grow. The interest shown by companies like Google underscores just how compelling and insightful this data can be—it provides a unique window into the breadth of human curiosity and conversation. Following a significant decline from its $230 peak, the stock now trades at approximately 11x sales and 81x earnings per share (EPS), based on 2025 consensus estimates. While these valuation multiples may appear elevated, they are more justifiable than they seem. Reddit's revenue is expected to grow by 42% this year, reaching record levels as the company anticipates its first profitable year. Moreover, analysts forecast an 83% increase in EPS for fiscal year 2026—from $1.24 in FY2025—highlighting Reddit's rapid scaling and improving profit margins. Following the stock's extended sell-off, Wall Street now seems rather optimistic about Reddit. RDDT stock features a Moderate Buy consensus rating, with 12 analysts currently bullish, eight neutral, and just one bearish. Reddit's average stock price target of $149.35 indicates a significant upside potential of almost 37% over the coming twelve months. Reddit's evolution from a grassroots online forum to a publicly traded company with a $19 billion market capitalization is truly impressive. The recent pullback to $103 appears to be more of a temporary pause than a long-term setback. Backed by strong user growth, a robust advertising business, and an increasingly valuable data licensing segment, Reddit is positioning itself for long-term success. My positive outlook is rooted in the fact that this is more than just a traditional social media investment, though that's a space I continue to believe in, as reflected in my conviction in Meta Platforms (META). Reddit represents a broader opportunity centered on community engagement, data monetization, and platform innovation. In my view, the current dip presents a compelling entry point ahead of what could be the company's next phase of growth. Disclaimer & DisclosureReport an Issue 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
Business Insider
3 days ago
- Business
- Business Insider
Reddit's (RDDT) Rollercoaster Ride Enters Buy-the-Dip Territory
Reddit Inc. (RDDT) stock has been on a wild ride since its IPO last March, soaring from $34 to a dizzying $230 before pulling back at $103 today. The bullish moment has been fueled by Reddit's jaw-dropping growth, tempered by whispers of doubt about whether it can keep the momentum going. I'm betting it can. With its unique platform and skyrocketing metrics in both the top and bottom lines, I see Reddit's dip as a rare chance to buy into a social media giant poised for a big rebound. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Surging User Engagement Fuels the Fire Reddit's strength lies in its vibrant, sticky community. In Q1, daily active users (DAUs) on the platform hit 108.1 million, a 31% year-over-year increase, while weekly users totaled 401 million. Millions of people are now exploring all kinds of subreddits for everything from niche hobbies to breaking news. I would argue that, along with X, Reddit is one of the best places to go to feel the pulse of what the 'conversation' is for any given topic. In the meantime, Reddit's 'Reddit Answers' feature, now at 1 million weekly users, has made it easier for people to find solutions, boosting engagement and keeping users hooked longer. This should prove to be a strong short to medium-term catalyst for Reddit to sustain sticky user metrics. And this stickiness translates into real staying power. The platform's ability to connect users over hyper-specific interests creates a network effect that's hard to replicate. As more users join, the content becomes richer, attracting even more people. It's a virtuous cycle that drives growth and makes it a magnet for advertisers seeking to tap into passionate, engaged audiences. Advertising Revenue Takes Flight Speaking of Reddit's advertising business, it is firing on all cylinders, with Q1 ad revenue soaring 61% to $359 million. I really like how Reddit's ads are sneaky but effective. You're deep in a thread about camping gear, and suddenly there's a sponsored post for a tent that fits the conversation perfectly. That's a superb delivery system that has advertisers lining up. Notably, over 50% more advertisers joined the platform year-over-year, indicating that brands view Reddit as a valuable channel for delivering high return on ad spend (ROAS). The Hidden Gem of Data Licensing Reddit's data has emerged as a highly valuable asset, and the company is beginning to effectively monetize it. In the last quarter, revenue from data licensing and related sources rose by 66% to $34 million. This growth is largely driven by the increasing demand for high-quality, user-generated content to train artificial intelligence models. Reddit's extensive and diverse dataset, covering a wide range of topics, makes it particularly well-suited for this purpose. Additionally, Reddit's partnership with Google (GOOGL), aimed at enhancing the platform's visibility in search results, has significantly increased its online presence. As a result, Reddit content is now more prominently featured in searches ranging from consumer advice to home repair solutions. Looking ahead, this revenue stream is likely to become a more significant part of Reddit's overall business. As AI technologies continue to evolve, the value of Reddit's comprehensive dataset is expected to grow. The interest shown by companies like Google underscores just how compelling and insightful this data can be—it provides a unique window into the breadth of human curiosity and conversation. RDDT Remains Pricey but Poised to Deliver Following a significant decline from its $230 peak, the stock now trades at approximately 11x sales and 81x earnings per share (EPS), based on 2025 consensus estimates. While these valuation multiples may appear elevated, they are more justifiable than they seem. Reddit's revenue is expected to grow by 42% this year, reaching record levels as the company anticipates its first profitable year. Moreover, analysts forecast an 83% increase in EPS for fiscal year 2026—from $1.24 in FY2025—highlighting Reddit's rapid scaling and improving profit margins. Is Reddit a Buy, Sell, or Hold? Following the stock's extended sell-off, Wall Street now seems rather optimistic about Reddit. RDDT stock features a Moderate Buy consensus rating, with 12 analysts currently bullish, eight neutral, and just one bearish. Reddit's average stock price target of $149.35 indicates a significant upside potential of almost 37% over the coming twelve months. A Bet on Reddit's Bright Future Reddit's evolution from a grassroots online forum to a publicly traded company with a $19 billion market capitalization is truly impressive. The recent pullback to $103 appears to be more of a temporary pause than a long-term setback. Backed by strong user growth, a robust advertising business, and an increasingly valuable data licensing segment, Reddit is positioning itself for long-term success. My positive outlook is rooted in the fact that this is more than just a traditional social media investment, though that's a space I continue to believe in, as reflected in my conviction in Meta Platforms (META). Reddit represents a broader opportunity centered on community engagement, data monetization, and platform innovation. In my view, the current dip presents a compelling entry point ahead of what could be the company's next phase of growth.
Associated Press
6 days ago
- Business
- Associated Press
Reddit Set to Join Russell® 3000 Index
SAN FRANCISCO--(BUSINESS WIRE)--May 28, 2025-- Reddit, Inc. (NYSE: RDDT) is set to join the broad-market, widely held Russell indexes later this quarter. Reddit debuted on the public markets in March 2024 as RDDT and remains one of the most visited websites in the world. Reddit retains an important position in the data and AI landscape with 100,000+ communities about nearly any topic and the largest corpus of human conversation on the internet today. As part of the recent 2025 Russell indexes reconstitution, a preliminary list of additions including Reddit was posted on May 23, 2025. Reddit will be added to the Russell 3000 index at the close of business June 27, 2025. In addition, Reddit will also be automatically added to either the Russell 2000 or Russell 1000 index. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings and style attributes. 'Being included in the Russell index is a meaningful milestone for Reddit. It puts us in good company and is a testimony to the platform we've built with our communities,' said Steve Huffman, Co-Founder and CEO of Reddit. 'As we grow, we aim to join other leading indexes and believe Reddit's unique strengths—our communities, content, and culture—position us well for the road ahead.' Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to data as of the end of June 2024, about $10.6 trillion in assets are benchmarked against the Russell US indexes, which belong to FTSE Russell, the global index provider. For more information on the Russell 3000® Index and the Russell indexes reconstitution, go to the 'Russell Reconstitution' section on the FTSE Russell website. About Reddit Reddit is a community of communities. It's built on shared interests, passion, and trust and is home to the most open and authentic conversations on the internet. Every day, Reddit users submit, vote, and comment on the topics they care most about. With 100,000+ active communities and 108+ million daily active unique visitors, Reddit is one of the internet's largest sources of information. For more information, visit About FTSE Russell, an LSEG Business FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 70 countries, covering 98% of the investable market globally. FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Approximately $18.1 trillion is benchmarked to FTSE Russell indexes. Leading asset owners, asset managers, ETF providers and investment banks choose FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives. A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance and embraces the IOSCO Principles. FTSE Russell is also focused on index innovation and customer partnerships as it seeks to enhance the breadth, depth and reach of its offering. FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit FTSE Russell. View source version on CONTACT: Investor Relations Jesse Rose [email protected] Relations Gina Antonini [email protected] KEYWORD: CALIFORNIA UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: TECHNOLOGY SOCIAL MEDIA COMMUNICATIONS INTERNET SOURCE: Reddit, Inc. Copyright Business Wire 2025. PUB: 05/28/2025 08:26 AM/DISC: 05/28/2025 08:25 AM
Yahoo
18-05-2025
- Business
- Yahoo
Jim Cramer Says Reddit (RDDT) Is 'Absolutely Worth Buying at These Levels'
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 discussed recently. On Wednesday's episode of Mad Money, Jim Cramer reviewed the recent developments affecting drug distribution companies and laid out why he is turning cautious on the group. He pointed out that stocks of major drug distributors have retreated from their all-time highs. 'Most of the time, that's because of vague, amorphous concerns that some type of regulatory crackdown will force them out of business or, at the very least, make them a lot less profitable.' READ ALSO Jim Cramer Put These 8 Stocks Under a Microscope Recently and Jim Cramer Commented on These 6 Natural Gas Players Cramer referenced the executive order signed by the President last week aimed at lowering drug prices, which triggered a sell-off across the drug distribution sector. He explained that the order would effectively require pharmaceutical companies to offer the U.S. government drug prices that match the lowest rates charged in other advanced economies. Cramer said the market's fear is straightforward: if drugmakers are forced to cut prices for their government customers, then drug distributors could see their margins shrink. 'The bottom line: No matter how well the drug distributors have been doing, I do not want to stick my neck out for an industry that now seems to be hated by both the Democrats and the Republicans. It seems like the only thing they agree on, doesn't it? There are so many potential winners in this market, I say, why take the risk?' For this article, we compiled a list of 8 stocks that were discussed by Jim Cramer during the episodes of Mad Money aired on May 14. We listed the stocks in the order that Cramer mentioned them. We also provided hedge fund sentiment for each stock as of the fourth quarter of 2024, which was taken from Insider Monkey's database of over 1,000 hedge funds. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (). Number of Hedge Fund Holders: 87 Cramer noted that Reddit, Inc. (NYSE:RDDT) is a 'buy' but only for investors who can withstand market volatility. '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%… Reddit (NYSE:RDDT) runs a widely used platform where users share content, take part in discussions, and engage in communities centered on specific topics. Overall, RDDT ranks 2nd on our list of stocks that Jim Cramer discussed recently. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . 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
12-05-2025
- Business
- Yahoo
Analyst Says Reddit (RDDT)'s AI Deals Are Just Beginning – How Big Could This Get?
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 buzzing stocks after latest earnings season. Markets were cheering the latest US-China trade deal, after which the two countries will significantly reduce tariffs on each other's imports for 90 days. The deal practically negates all bear cases modeled by Wall Street analysts based on the impact of tariffs. Sylvia Jablonski, Defiance ETFs CEO and CIO, called the deal a 'game changer' during a program on CNBC. 'I think both countries probably saw a little bit of the demise of what would be here with a non-tariff deal as the data came in. You had a lot of complaints around China across all sectors and then in the US, retailers were reaching out to President Trump and saying that shelves are empty and, you know, a lot of panic about semiconductor software companies. I think that this is really a game changer for both countries, and the big message here is that both countries, it sounds like, decided that they really don't want to decouple, and, you know, make America great might also mean that, you know, China stays.' READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In. For this article, we picked 10 stocks currently making moves amid the latest earnings season. With each stock we have mentioned the latest hedge fund sentiment. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here). Copyright: dolgachov / 123RF Stock Photo Number of Hedge Fund Investors: 52 LikeFolio 's Megan Brantley explained during a program on Schwab Network why Reddit, Inc. (NYSE:RDDT) stands out among other social media platforms when it comes to the ads business: 'Reddit is in a unique position versus a lot of other companies that we often compare it to, just because of how its platform is designed and how consumers are using it. I would compare Reddit most closely to Pinterest in terms of having a captive audience of consumers who are searching for a very specific topic, have a specific objective, and are looking for more information. But Reddit may even be better because it's so text-based versus image-based, and I think that's part of the reason why we've seen such traction in Reddit's advertising. With over 80 million daily active users, Reddit Inc (NYSE:RDDT) remains one of the fastest-growing social media platforms in the world. While Facebook and Twitter show signs of maturing growth, Reddit Inc (NYSE:RDDT) still has huge upside potential as more and more people flock to Reddit discussion boards for authentic opinions and discussion. User input from millions of people on various topics freely accessible to anyone is Reddit Inc (NYSE:RDDT)'s moat. As of 2023, users posted 16 billion comments on the platform, according to the company. That's why companies are flocking to pay money to Reddit to use its data to train their AI models. Reddit Inc (NYSE:RDDT) has a licensing agreement with Alphabet Inc.'s Google worth $60 million to help train large language models. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years. The company generated approximately $20 million from AI content deals last quarter and expects to exceed $60 million by year-end. Reddit Inc (NYSE:RDDT) has signed licensing agreements totaling $203 million, with terms lasting two to three years. Munro Global Growth Small & Mid Cap Fund stated the following regarding Reddit, Inc. (NYSE:RDDT) in its Q4 2024 investor letter: 'Key contributors to performance over the quarter were Reddit and AppLovin (see stock story on page 5). Reddit, Inc. (NYSE:RDDT) delivered a strong set of results, demonstrating impressive revenue growth and expanding operating margins. As the world grapples with misinformation and AI-generated content, we continue to view Reddit's position as a unique platform hosting the largest volume of human conversations globally becoming increasingly valuable.' Overall, RDDT ranks 7th on our list of buzzing stocks after latest earnings season. While we acknowledge the potential of RDDT as an investment, our conviction lies in the belief that under-the-radar AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than RDDT but that trades at less than 5 times its earnings, 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.
