Latest news with #RedditInc.
Yahoo
05-06-2025
- Business
- Yahoo
Brokers Suggest Investing in Reddit Inc. (RDDT): Read This Before Placing a Bet
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter? Let's take a look at what these Wall Street heavyweights have to say about Reddit Inc. (RDDT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage. Reddit Inc. currently has an average brokerage recommendation (ABR) of 1.96, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms. An ABR of 1.96 approximates between Strong Buy and Buy. Of the 24 recommendations that derive the current ABR, 13 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 54.2% and 4.2% of all recommendations. Check price target & stock forecast for Reddit Inc. here>>>While the ABR calls for buying Reddit Inc., it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement. Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them. On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks. Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements. In terms of earnings estimate revisions for Reddit Inc., the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $1.21. Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Reddit Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Reddit Inc. 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 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
26-04-2025
- Business
- Yahoo
Wall Street Bulls Look Optimistic About Reddit Inc. (RDDT): Should You Buy?
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? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Reddit Inc. (RDDT). Reddit Inc. currently has an average brokerage recommendation (ABR) of 2.00, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms. An ABR of 2.00 indicates Buy. Of the 23 recommendations that derive the current ABR, 13 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 56.5% and 4.4% of all recommendations. Check price target & stock forecast for Reddit Inc. here>>>The ABR suggests buying Reddit Inc., but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation. Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations. This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements. With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision. Although both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether. The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5. Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide. In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research. Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns. There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices. Looking at the earnings estimate revisions for Reddit Inc., the Zacks Consensus Estimate for the current year has declined 10.7% over the past month to $1.04. Analysts' growing pessimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates lower, could be a legitimate reason for the stock to plunge in the near term. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Reddit Inc. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> Therefore, it could be wise to take the Buy-equivalent ABR for Reddit Inc. with a grain of salt. 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 Reddit Inc. (RDDT) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Forbes
25-03-2025
- Business
- Forbes
IPO Essentials: How To Ensure A Successful Public Debut For Your Company
Razzak Jallow is the CFO of pre-IPO fintech company FloQast. The IPO market began to show signs of life last year, and that momentum is expected to carry over into 2025. According to Renaissance Capital, IPO proceeds surged over 50% last year, powered by high-profile debuts such as Reddit Inc. and Rubrik Inc. Looking ahead, Renaissance Capital anticipates a stellar year for IPOs in 2025, projecting 155 to 195 new listings as the market stabilizes and returns to more typical conditions. Among the standout companies expected to lead the IPO charge this year are fintech powerhouse Stripe, European payments leader Klarna and AI chipmaker Cerebras. As signs of an IPO recovery emerge in 2025, it's important to recognize the broader impact of a successful public debut. When a company makes a strong entry into the public market, it generates optimism and inspires other ambitious businesses to embark on their own IPO journeys. A well-executed IPO not only benefits the company but also contributes positively to the broader economy. As more companies gear up to enter the public market, here are four essential tips and best practices to help organizations strengthen their compliance processes, streamline IPO readiness and position themselves for a successful public debut. Before diving into the IPO process, assemble the right team to guide you through the experience. The reality is the IPO journey is a mix of exhilarating highs, unexpected twists and the occasional heart-pounding drop. So, surround yourself with seasoned consultants who have been around the block—experts who can offer insights into what to expect during the IPO journey, the post-IPO landscape and, crucially, the regulatory environment. These advisors will help position your organization for success during your IPO and well beyond it. But it's not just about the IPO itself. Your team also needs to be ready for the workplace shifts that come after going public. New rules, controls and heightened scrutiny can be challenging to navigate. Public companies face far more attention than private ones, and public perception can directly impact stock value. That's why it's so important to prepare not just yourself but your entire team for the changes ahead. With the right people and mindset, you'll be better equipped to handle the transition and thrive in the public market. Before you embark on an IPO, you must roll up your sleeves and do your research. Start by pulling S-1 filings from other companies in your industry and studying them closely. Pay attention to the SEC's comments and questions on those filings—they'll give you valuable insights into what regulators are looking for and help you avoid potential delays. But don't stop there. Look into regional and national associations for educational opportunities and networking events that can broaden your understanding of the IPO process. And don't underestimate the power of LinkedIn—use it to connect with experienced financial professionals who've been through the IPO journey. Their firsthand knowledge can be a gold mine of practical advice and lessons learned. If you're used to operating as a private company, the shift to being public will require adjustments. While you might be accustomed to monthly reporting for the CFO and board, as a public company, you'll need to prepare quarterly financial statements and disclosures. To make the transition smoother, start operating like a public company even before the IPO. That means tightening internal controls and documenting them thoroughly, establishing and enforcing approval hierarchies and getting comfortable with quarterly external reviews and annual audits. And don't forget, SOX compliance audits will become a regular part of your yearly routine. The good news is that technology can play a big role in getting you IPO-ready by supporting the ongoing reporting and compliance demands of being a public company. For instance, the right fintech software can help companies integrate compliance controls directly into their financial close and reconciliation workflows, ensuring that critical tasks are aligned with regulatory requirements. This kind of automation can reduce manual effort and minimizes errors, which is particularly valuable during an IPO when auditors demand precise and timely documentation. When you demonstrate a commitment to transparency and accountability, you show investors that the information you provide is accurate and reliable. That makes your organization more trustworthy and, thus, more attractive to potential shareholders. AI can be a game changer for accountants, especially during high-stakes processes like preparing for an IPO, where any mistake can be fatal. Automating routine tasks such as data entry, account reconciliations and financial statement preparation allows accountants to dedicate more time to strategic activities, like getting ready to go public. During the IPO process, teams are often understaffed, overworked and struggling against tight deadlines. And this is where AI shines. Generative AI can process vast amounts of data rapidly, delivering insights and ensuring compliance with regulatory standards. For teams grappling with labor shortages, AI serves as a critical support system, handling repetitive tasks and freeing up resources for higher-level responsibilities, like IPO readiness and audit preparation. The IPO market is on the rebound, and for those who anticipate continued growth, it's time to buckle up. The ride could begin sooner than you think, so prepare to seize the moment. As you navigate this IPO process, remember not to get bogged down in the details. Approach it thoughtfully and methodically, yes, but make sure you maintain balance and focus on the big picture. After all, this is just the beginning of your company's public story. Forbes Finance Council is an invitation-only organization for executives in successful accounting, financial planning and wealth management firms. Do I qualify?
Bloomberg
10-03-2025
- Business
- Bloomberg
Market's Speculative Fringe Is Blasted as Equity Rout Snowballs
The flight from risk taking place in US equities has been painful for the tech giants who were last year's big winners, but it pales in comparison to the walloping being doled out in the more speculative fringes of the market. Take Reddit Inc., the social-media company whose shares more than quadrupled last year. It tumbled 20% on Monday, its worst day since going public last year. Retail favorites like Tesla Inc. and Palantir Inc. both sank more than 10%. Strategy Inc., which has turned into a proxy for Bitcoin, dropped 17% and Cathie Wood's ARK Innovation exchange-traded fund declined 8.8%.
