Reddit (RDDT) Earnings Preview: Analysts Project Strong Growth
Q4 Earnings Report Expected Wednesday Post-Market
Key Expectations:
* Revenue: $408.92 million (64% YoY growth)
* Earnings: $47.6 million (157% YoY growth)
* Daily active users: 103.24 million (41% YoY growth)
Analyst Sentiment:
* 8 out of 11 tracked analysts rate RDDT as "buy" or equivalent
* Average price target: $206 (9% below current price)
Growth Drivers:
* Surge in daily active users
* Revenue upside from advertising growth
* Artificial intelligence tool "Reddit Answers" for enhanced advertising capabilities
* Potential partnership with Google for search traffic
Stock Performance:
* Soared nearly 7x since IPO in March 2024
* Climbed 40% year-to-date
* Deutsche Bank upgraded price target to $235
* Morgan Stanley projects "multiple levers for outsized growth" in 2025
Market Reaction:
* Shares slightly down on Monday after Friday's record high