From Nasdaq: 2025-04-29 15:01:00

Reddit (RDDT) is set to release its first-quarter 2025 results, expecting revenues between $360-370 million, representing 48-52% year-over-year growth. The Zacks Consensus Estimate is $372.09 million, with earnings of 3 cents per share. RDDT’s earnings have consistently surpassed estimates in the last four quarters by an average of 194.08%.

Factors likely to influence Q1 performance include continued growth in advertising, user engagement, and AI initiatives. RDDT is seeing strong growth in its advertising business, with improvements in ad performance and offerings. The company expects solid growth from mid-market and SMB customers. Investments in automation and AI aim to enhance user experience and ad performance.

Despite positive performance expectations, RDDT stock is trading at a premium, with a Value Score of F. Shares have declined 25.7% YTD, underperforming the sector and industry. The company faces competition from Snap (SNAP) and macroeconomic uncertainties. RDDT currently carries a Zacks Rank #5 (Strong Sell).

Reddit benefits from expanding partnerships, like its collaboration with Alphabet (GOOGL) to enhance content discovery and community engagement. The company also explores new sectors through partnerships with Intercontinental Exchange (ICE). However, competition from Snap and evolving privacy regulations in the EU could impact Reddit’s performance negatively.

Zacks names a #1 semiconductor stock with strong earnings growth and a growing customer base, positioned to meet the demand for AI, ML, and IoT. Global semiconductor manufacturing is projected to grow significantly. Investors can access the stock recommendation for free.



Read more at Nasdaq: Reddit Stock Before Q1 Earnings: A Smart Move or Risky Investment?