Reddit Stock Declines Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 18 2024
0mins
Should l Buy RDDT?
Reddit Inc's stock fell 7.71% as it hit a 20-day low, reflecting broader market trends.
Despite the upcoming earnings call scheduled for February 5, where analysts expect a significant year-over-year EPS increase of 161%, the stock is currently trading 19.1% below its 20-day simple moving average. This bearish trend is compounded by the Nasdaq-100's decline of 1.16%, indicating sector rotation as investors shift away from tech stocks.
The implications of this decline suggest that while Reddit may have strong earnings potential, current market conditions are exerting downward pressure on its stock price, necessitating caution among investors.
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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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- Record Net Income: The net income for Q4 was $252 million, with diluted EPS at $1.24 and free cash flow of $264 million, reflecting the company's exceptional performance in profitability and cash flow management.
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See More
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See More
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- Gartner Earnings Miss: Gartner (NYSE:IT) fell 25.41% this week following the release of its fourth-quarter financial results and a downward revision of its FY26 guidance, with analysts' pessimistic outlook likely to exert further pressure on the stock.
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- Market Impact: His investment has sparked discussions on social media, particularly on platforms like Reddit, indicating that athletes' influence and participation in financial markets are on the rise, potentially attracting more athletes to the fintech sector.
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