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Here's Why Reddit Inc. (RDDT) Fell More Than Broader Market

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Reddit Inc. (RDDT - Free Report) closed the most recent trading day at $163.51, moving -1.45% from the previous trading session. The stock fell short of the S&P 500, which registered a loss of 0.54% for the day. Elsewhere, the Dow saw a downswing of 0.53%, while the tech-heavy Nasdaq depreciated by 0.66%.

The company's shares have seen an increase of 25.64% over the last month, surpassing the Computer and Technology sector's gain of 3.76% and the S&P 500's gain of 1.5%.

The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.

The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 4.79% higher within the past month. As of now, Reddit Inc. holds a Zacks Rank of #2 (Buy).

The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 34, placing it within the top 14% of over 250 industries.

The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.


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