Reddit Inc. stock declines amid broader market weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy RDDT?
Source: Benzinga
Reddit Inc. shares fell 3.00% as the stock hit a 20-day low, reflecting a challenging trading environment.
The decline comes amid broader market weakness, with the Nasdaq-100 down 0.74% and the S&P 500 down 0.39%. This suggests a sector rotation, as Reddit's performance contrasts with the overall market trend.
Investors are closely monitoring Reddit's position in the market, especially as it faces pressures from broader economic conditions, which may impact future growth prospects.
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Analyst Views on RDDT
Wall Street analysts forecast RDDT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for RDDT is 260.00 USD with a low forecast of 207.00 USD and a high forecast of 325.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
22 Analyst Rating
14 Buy
8 Hold
0 Sell
Moderate Buy
Current: 151.050
Low
207.00
Averages
260.00
High
325.00
Current: 151.050
Low
207.00
Averages
260.00
High
325.00
About RDDT
Reddit, Inc. operates a social platform, Reddit. Reddit is a community of communities. It is built on shared interests, passion, and trust and is home to open and authentic conversations on the Internet. Reddit is a global, digital city where anyone in the world can join a community to learn from one another, engage in authentic conversations, explore passions, research new hobbies, exchange goods and services, create new communities and experiences, share a few laughs, and find belonging. Reddit has thousands of communities, endless conversations, and authentic human connections. Communities on Reddit are organized based on specific interests and are called subreddits. Reddit offers real-time access to evolving and dynamic topics, such as sports, movies, news, fashion, and the latest trends. On Reddit, users can submit, vote, and comment on the topics they care about. It has approximately 100,000+ active communities and approximately 101+ million daily active visitors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Stock Buyback Program: Reddit announced a $1 billion stock repurchase program with no set expiration date, aimed at enhancing shareholder value and boosting market confidence in the company's future prospects.
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- Revenue Surge: The company achieved revenue of $726 million, a 70% year-over-year increase, with advertising revenue rising by 75%, demonstrating Reddit's growing competitiveness in the advertising market and potential for further market share expansion.
- Strong User Growth: Daily Active Uniques (DAUq) rose by 19% to 121.4 million, with international growth (up 28%) outpacing the U.S., showcasing Reddit's appeal and potential for expansion on a global scale.
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