Within the past 30 days, our consensus EPS projection remained stagnant. Reddit Inc. is currently sporting a Zacks Rank of #1 (Strong Buy). According to recent reports, X is looking to raise capital by selling stakes valuing the company at $44 billion — the same price that Tesla CEO Elon Musk acquired the business at in 2022. After today’s pullback, Reddit has a market capitalization of roughly $31 billion. Reddit has also taken an unusual step by setting aside close to 2 million shares for its moderators and users as part of the deal, even if not everyone has high expectations about the company’s potential.

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Normal trading hours are slated to resume Monday, the day after Easter Sunday. In its most recent quarter (for the three months ending on Sept. 30, 2024), Reddit reported revenue of $348 million, up an eye-popping 68% from a year earlier. Moreover, daily average users (DAUs) increased by 47% to 97 million.

The news aggregator and social forum operator reported fantastic results in the third quarter of 2024, lighting a fire under the stock. Share prices rose as much as 43.1% on the news, settling down to a slightly milder 40% gain by noon ET. All told, the stock has gained 146% since joining the public stock market seven months ago. The offering also makes Reddit one of the first online companies to offer shares to its contributors — the “Redditors” who comment on its boards and the moderators who manage them.

  • This also may be a time to look at IRA to Roth conversions because your stocks are down.
  • Also, the Hong Kong stock market remains closed on Good Friday and Monday, April 21.
  • Google made some changes to its algorithm that led to Reddit nearly doubling its size in the past 18 months.
  • Rallies across the nation on April 5 purportedly drew crowds that reached 5.2 million, the group posted on Instagram.

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That’s because AI models need to be trained on tremendously large datasets. Therefore, it’s likely that AI developers may look to license Reddit’s Corpus to help train the next generation of AI models — providing Reddit with another lucrative revenue stream in addition to advertising. Indeed, Alphabet, the parent company of Google, already inked a similar deal with Reddit last year. First, Reddit is hard at work translating all of its existing content — decades worth of posts — from English into other languages. The company started with French, Spanish, German, Italian, and Portuguese, with plans to roll out automatic, real-time translation for another 25 languages this year. In doing so, the company hopes to grow its international audience.

OpenAI strikes Reddit deal to train its AI on your posts

Today, more than one-third of the 30 companies in the Dow industrials deal in finance, insurance or high tech and don’t make products that need to be physically transported. On Thursday, the S&P 500 entered “correction” territory — a 10% drop from its recent high, which in this case had been recorded Feb. 19. The pullback inspired some market commentators to dust off an antique market indicator known as the Dow Theory. That indicator posits that any move in the Dow industrials must be matched by a similar move in the Dow transportation index.

For the annual period, the Zacks Consensus Estimates anticipate earnings of $1.16 per share and a revenue of $1.83 billion, signifying shifts of +134.83% and +40.43%, respectively, from the last year. In 2021, Reddit’s first IPO attempt fizzled, but now it’s ready to try again by riding the wave of generative AI hype. Reddit is going public, seeking a $6.5 billion valuation after a year of upheaval that gave it more control over what CEO Steve Huffman has called a “vast corpus” of valuable data that can be used to train AI. As an example, Google recently cut a deal with Reddit worth a reported $60 million per year for real-time access to that data.

Reddit’s active user counts surged 51% higher in the U.S. and 44% higher in international markets. Average revenue per user (ARPU) increased by mid-teen percentages around the world. These separate improvements added up to a 56% boost to worldwide ad sales.

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  • The pullback inspired some market commentators to dust off an antique market indicator known as the Dow Theory.
  • J.P. Morgan was impatient with acquaintances who wished to compress all these considerations into a single all-purpose maxim.
  • Meta also generates annual revenue of $135 billion, while Reddit’s remains below $1 billion.
  • Zacks may license the Zacks Mutual Fund rating provided herein to third parties, including but not limited to the issuer.

As for markets that will be open during normal U.S. business hours Friday, those are few and far between, though the always-open cryptocurrency market will trade as normal. Bitcoin, the world’s most valuable crypto asset, was flat at just below $85,000 Friday morning. Other how to invest money wisely revenue still accounted for just 9.5% of Reddit’s third-quarter sales, leaving plenty of room for continued growth. It remains to be seen how Reddit’s users will react to making their writing available for LLM training purposes, but it’s a robust growth vector at the moment. On the earnings call, Reddit COO Jen Wong said that the company licenses its user data to support advertising data analytics, as well as training large language models (LLMs) and other artificial intelligence systems.

Meta Platforms — whose biggest social media service Facebook was started just 18 months earlier than Reddit —- boasts a market value of more than $1.2 trillion. Meta also generates annual revenue of $135 billion, while Reddit’s gmarkets remains below $1 billion. The most serious place on Reddit for Stock related discussions!

SAN FRANCISCO (AP) — Reddit, that vast, lively and sometimes chaotic repository of internet discussion, is expected to carry a valuation up to $6.4 billion when it conducts its initial public offering on the stock market. Please search before posting to help us cut down on repetitive posts. If you are new to the markets, click here or see our resources in the sidebar. Additionally, see our quick guide on how to ask good questions and share quality content.

The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company’s earnings per share (EPS) are projected to be $0.02, reflecting a 93.1% decrease from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for avatrade review revenue is projecting net sales of $374.53 million, up 54.15% from the year-ago period. Meanwhile, X is broadly believed to have significantly more active users than Reddit.

That’s pretty much what happened with Robinhood Markets, which operates a simple-to-use and low cost trading platform aimed at novice investors that also offered IPO shares to its users. The company’s stock opened at $38 on its first day of trading in July 2021, shot up to $85 five days later, then plunged back to roughly $40 after just six weeks. Several positive analyst moves added up to a tailwind, pushing Reddit’s (RDDT 0.69%) share price up notably in the final month of 2024.

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about. Reddit noted that a Google (part of Alphabet) search algorithm change hurt traffic in late Q4. However, it said traffic from search has recovered thus far in Q1, and it did see more people start to search for the term “reddit” after the change, indicating people were looking for its content. The company said France is the first country where it has used machine learning translation. It noted the country is growing between 30% to 40% faster than its focus markets. It said it is rolling out its translation machine learning to half a dozen other languages right now and will continue this throughout the year.