But the filing brings to the forefront a question that has been bubbling for years behind the scenes – how can a business make money from what is, essentially, random conversations. Please only keep memes to weekends, we will remove them if posted on a weekday. Harassment includes but is not limited to ad-hominem attacks, racism, discrimination, sexual harassment, hateful/violent language, slurs, and in general just being an asshole. If you are being harassed, report it to us or Reddit admins. If you are harassing someone, you will be permanently and immediately banned and reported to Reddit admins.
- The most serious place on Reddit for Stock related discussions!
- Moat of the stocks i own fell 20%, 30% in a matter of 1-2 months and i don’t understand what’s happening.
- Investors dumped tech stocks, which had led the run over the past six days.
- That kind of performance isn’t escaping the notice of the researchers already following Reddit’s fortunes.
Nvidia has warned of a $5.5 billion charge due to restrictions on its H20 chip, and Huang reportedly called the export curbs a policy “failure” that is driving China to accelerate development of its own AI chips. Currency concerns also have alarm bells ringing as the US dollar fell to a two-week low, with traders eyeing the ongoing G-7 meeting for signs the Trump administration may favor a weaker currency. Meanwhile, the US and China have begun feuding over chips again, Best gold stock less than two weeks after agreeing to a temporary pause in tariff hostilities. The Trump administration’s warnings against using AI chips by Huawei have undermined the recent trade talks in Geneva, China said, putting the fragile trade deal at risk and reviving worries about economic fallout.
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By the close of trade on Thursday its shares stood at $50.44, valuing the firm at more than $9bn (£7.1bn). On Wednesday, Reddit revealed that it had priced its shares at $34 each, near the top of a marketed range. If posting a link or image, we ask that you provide some commentary behind the link unless the title is self-explanatory and significant. Simply posting an image by itself or posting your positions, or P&L gain(loss), without market or risk commentary will also be considered low-effort. Any post that contains large amounts of Gen AI text is considered low-effort. Get stock recommendations, portfolio guidance, and more from The Motley Fool’s premium services.
It could also cause investors to assign lower valuation multiples to Reddit stock. Shares of Reddit (RDDT 3.90%) soared to the skies on Wednesday. The news aggregator and social forum operator reported fantastic results in the third quarter of 2024, lighting a fire under the stock.
- Melich noted that the comments likely reflect hope from Home Depot that the Trump administration will solidify major trading deals while the company’s core consumer remains stable.
- The company celebrates its 20th birthday in 2025, a testament to its ability to endure the ups and downs of Google’s search algorithms.
- Similarly, the rise of AI is a threat to Reddit’s business, since people can ask large language models for answers instead of Reddit.
- As a result, stock splits help make shares more affordable to smaller investors and provide greater marketability and liquidity in the market.
- This report highlighted a couple of interesting developments.
Is It Better to Own a Stock Before or After a Split?
Wall Street is keeping a close eye on Trump’s giant tax bill, as Republicans try to appease all factions of their splintered caucus. Anxieties about the budget bill and the US debt have helped push up US bond yields. Stock market futures were calm when trading resumed at 6 p.m. “The decision by Moody’s to downgrade the U.S. government’s credit rating highlights that there are several potential storm clouds on the horizon for Treasuries,” wrote Thomas Mathews, head of markets for Asia Pacific. This month, the Roundhill Magnificent 7 ETF (MAGS) is up more than 13%, while the Nasdaq 100-tracking Invesco QQQ Trust (QQQ) is up 9.8%. Meanwhile, the SPDR S&P 500 ETF (SPY) is up 7.3% month to date, and the Invesco xtb.com reviews S&P 500 Equal Weight ETF (RSP) trails even further behind with a 6.4% gain.
Home Depot executives said consumers are continuing to “trade up” when they see new and innovative products, according to Jefferies. Investors dumped tech stocks, which had led the run over the past six days. Advanced Micro Devices, Meta Platforms, Apple and Microsoft also dropped.
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Once you’ve been approved to trade and have funded your account, you are ready to invest. In addition to one-time investments, you may choose to set up recurring investments, which is when you buy individual stocks or funds with the same amount of money at regular intervals. Continually investing, regardless of market prices, may help to reduce the impact of volatility on the porsche ipo how to buy overall purchase. For the strategy to be effective, you must continue to purchase shares when prices are up and when they’re down.
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Given its more reasonable forward P/E and strong business performance, Reddit looks like a worthwhile investment to buy and hold for the long term. Despite the dynamic macroeconomic climate, Reddit estimates Q2 revenue will reach a range of $410 million to $430 million. That would be a strong increase over the prior year’s $281.2 million.
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. A lot of that growth was fueled by the elections, geopolitical conflicts, and other major news stories, which drove more of its users to engage in online discussions. Those discussions generated more data for Reddit to craft its targeted ads. It also struck data-sharing deals with Alphabet’s Google and OpenAI, which integrated its discussions directly into the former’s search results and the latter’s generative AI chatbot. Anders Bylund has no position in any of the stocks mentioned. On the earnings call, Reddit COO Jen Wong said that the company licenses its user data to support advertising data analytics, as well as training large language models (LLMs) and other artificial intelligence systems.
That means Redditors and moderators will be able to sell their shares immediately if they wish. Shares of Reddit (RDDT 3.90%) were sliding this week in response to an analyst downgrade on the social media stock. It fell sharply in the broader sell-off on Wednesday in response to a weak Treasury auction and rising Treasury yields, perhaps reflecting a lack of confidence in the U.S. economy and recessionary fears. If the stock undergoes a two-for-one split before the shares are returned, it simply means that the number of shares in the market will double along with the number of shares that need to be returned. The information herein is general and educational in nature and should not be considered legal or tax advice.
Is a Stock Split Good for Investors?
No. 2 was Guggenheim, whose analyst Michael Morris also tagged the company as a buy at a slightly higher ($210 per share) fair value assessment. Nvidia (NVDA) is slated to report fiscal first-quarter results after the market closes Wednesday, with Wall Street expecting a record quarter from the world’s second-most valuable company. We can all feel the negative atmosphere in the stock market, since the beginning of the year, we’ve been hearing nothing but bad news. Over the past year, Reddit grew its DAUq users at high double-digit rates as its ratio of logged-in users increased. As a result, its growth in ARPU and total revenues accelerated. Your average Wall Street analyst expected a loss of $0.23 per share on revenues near $313 million.
Also, somewhat atypically for a tech stock, Reddit has been profitable lately. It booked a generally accepted accounting principles (GAAP) net income of just under $30 million in its most recently reported frame, following two straight quarters of losses. Views expressed are as of the date indicated, based on the information available at that time, and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author and not necessarily those of Fidelity Investments or its affiliates.
Each DAUq represents a person visiting Reddit’s website or mobile app at least once in a 24-hour period. With the stock down 56% from its high, does the price drop present a buy opportunity? To answer that question, here’s a deeper dive into the company. Friday’s credit downgrade of the U.S. by Moody’s Ratings comes at what was already a “tough time” for the Treasury market, according to a strategist for Capital Economics.
The home improvement retailer expects total sales to grow 2.8% in 2025. Following JPMorgan’s Investor day, Bank of America reiterated its bullish stance on the bank stock. Check out some of the companies making headlines in premarket trading.
