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Reddit Inc. (RDDT) Stock Drops Despite Market Gains: Important Facts to Note
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In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $162.10, marking a -6.44% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.31%.
The company's shares have seen an increase of 10.84% over the last month, surpassing the Computer and Technology sector's loss of 0.42% and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $746.89 million, indicating a 49.49% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.83 per share and revenue of $3.25 billion. These totals would mark changes of +84.35% and +47.64%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Reddit Inc. is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Reddit Inc. has a Forward P/E ratio of 35.85 right now. This denotes a premium relative to the industry average Forward P/E of 18.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
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Reddit Inc. (RDDT) Stock Drops Despite Market Gains: Important Facts to Note
In the latest trading session, Reddit Inc. (RDDT - Free Report) closed at $162.10, marking a -6.44% move from the previous day. The stock's change was less than the S&P 500's daily gain of 0.5%. Elsewhere, the Dow gained 0.7%, while the tech-heavy Nasdaq added 0.31%.
The company's shares have seen an increase of 10.84% over the last month, surpassing the Computer and Technology sector's loss of 0.42% and the S&P 500's loss of 0.23%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $746.89 million, indicating a 49.49% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.83 per share and revenue of $3.25 billion. These totals would mark changes of +84.35% and +47.64%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Reddit Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Reddit Inc. is carrying a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Reddit Inc. has a Forward P/E ratio of 35.85 right now. This denotes a premium relative to the industry average Forward P/E of 18.49.
The Internet - Software industry is part of the Computer and Technology sector. This industry currently has a Zacks Industry Rank of 85, which puts it in the top 35% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.