Reddit

Despite the recent 57% drawdown in Reddit's stock price from its peak, the company's long-term growth potential remains intact, driven by innovative ad products and increasing user engagement. Its Q4 FY24 earnings showed strong revenue growth of 71% YoY and significant profitability improvements, though smaller revenue and earnings beats compared to prior quarters likely impacted investor optimism. While short-term volatility can be expected due to tariff uncertainties and potential ad spending slowdown, Reddit's unique ad units and high-margin data licensing offer some resilience.» Mehr auf seekingalpha.com

Tariff fears have created attractive buying opportunities among high-quality growth names. The latest quarter saw the company post 71% YoY revenue growth and 39% YoY user growth, with significant contributions from international markets and machine translations. Despite tariff uncertainties, RDDT's low ARPU compared to peers suggests sustained 20% top line growth over the next decade.» Mehr auf seekingalpha.com

Reddit's stock, down ~50% from its peak, is now a compelling buy, due to its strong user growth and diversified revenue streams. Beyond general market volatility, Reddit stock fell because it reported a decline in U.S. users in Q4, which was driven by a Google search algorithm changed. Management notes that this has happened periodically through Reddit's history, and that it has regained momentum in Q1.» Mehr auf seekingalpha.com