Reddit's shares fall after disappointing user growth in Q4, but revenue and potential growth are positive.

From Nasdaq: 2025-02-22 16:30:00

Shares of Reddit (RDDT) tumbled after its Q4 earnings report, but are still up 20% YTD. Revenue soared by 71% to $427.7 million, with ad revenue up 60% to $394.5 million. Daily users increased by 39% to 102 million. Reddit is investing in AI for ad campaigns and user engagement. Forecasted Q1 revenue is $360-370 million. With a forward P/E ratio of 66 times 2025 estimates, Reddit shows potential for growth. Despite a slight miss in daily active users, Reddit’s international opportunity and AI solutions could drive stock upside. Consider investing after the dip.



Read more at Nasdaq: Reddit Shares Tumble as User Growth Disappoints. Is Now a Golden Opportunity to Buy the Stock?