Headline: Reddit Stock Mixed in Q4, Guidance Beats Estimates
Key Points:
* RDDT shares fell 13% in pre-market trading after mixed Q4 earnings results.
* Revenue surpassed expectations, rising 70% to $427.7 million.
* Diluted EPS missed estimates, coming in at $0.36 versus expectations of $0.48.
* Daily active users reached 101.7 million, below projections of 103.8 million.
* CEO Huffman attributed traffic volatility to Google algorithm changes but expressed optimism.
* Q1 guidance exceeds analyst forecasts, with revenue projected between $360-370 million.
* Adjusted earnings expected at $80-90 million, above expectations of $72 million.
* Reddit remains optimistic despite mixed Q4, citing strong ad revenue growth and licensing deals with AI giants.
* Investors view Reddit as an AI play, with shares rising 33% YTD and 363% since February 2024.
* Wall Street analysts maintain positive ratings on RDDT, citing robust ad revenue and international expansion plans.