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Here's Why Reddit Inc. (RDDT) Fell More Than Broader Market
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In the latest close session, Reddit Inc. (RDDT - Free Report) was down 6.45% at $185.26. The stock's performance was behind the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Coming into today, shares of the company had gained 19.33% in the past month. In that same time, the Computer and Technology sector lost 2.99%, while the S&P 500 gained 0.53%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings report is expected on July 30, 2026. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $746.89 million, reflecting a 49.49% rise from the equivalent quarter last 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.
It is also important to note the recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Reddit Inc. has a Forward P/E ratio of 40.97 right now. This expresses a premium compared to the average Forward P/E of 20.31 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
View the Zacks #1 Rank List
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Here's Why Reddit Inc. (RDDT) Fell More Than Broader Market
In the latest close session, Reddit Inc. (RDDT - Free Report) was down 6.45% at $185.26. The stock's performance was behind the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Coming into today, shares of the company had gained 19.33% in the past month. In that same time, the Computer and Technology sector lost 2.99%, while the S&P 500 gained 0.53%.
The upcoming earnings release of Reddit Inc. will be of great interest to investors. The company's earnings report is expected on July 30, 2026. The company is expected to report EPS of $0.99, up 120% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $746.89 million, reflecting a 49.49% rise from the equivalent quarter last 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.
It is also important to note the recent changes to analyst estimates for Reddit Inc. Such recent modifications usually signify the changing landscape of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. At present, Reddit Inc. boasts a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Reddit Inc. has a Forward P/E ratio of 40.97 right now. This expresses a premium compared to the average Forward P/E of 20.31 of its industry.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 89, placing it within the top 37% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.