From Nasdaq: 2025-05-27 09:49:00

Zacks.com highlights Reddit’s stock performance, down 39% YTD, underperforming the sector. RDDT’s ad revenues increased 61% YoY to $358.6 million. The company introduced new features like Dynamic Product Ads to boost engagement. RDDT’s expanding partnerships, like with Integral Ad Science, enhance measurement capabilities for advertisers.

Despite RDDT’s growth, competition from Alphabet and Snap poses challenges. Alphabet’s Google ad revenues rose 8.5% YoY to $66.885 billion. RDDT’s stock is trading at a premium with a Value Score of F. The company’s prospects are promising, but stiff competition and stretched valuations are concerns.

Zacks recommends holding RDDT stock for now due to competition and valuation concerns. RDDT’s expanding advertising business and partnerships are positive, but market challenges remain. Investors should wait for a more favorable time to accumulate the stock. Zacks also highlights a top semiconductor stock with strong growth potential in the AI, ML, and IoT sectors.



Read more at Nasdaq: The Zacks Analyst Blog Highlights Reddit, Alphabet, Integral Ad Science and Snap