American Invest Hub
  • Politics
  • Investing
  • Business
  • Latest News

American Invest Hub

  • Politics
  • Investing
  • Business
  • Latest News
Politics

Top 3 reasons why I’m buying Reddit stock on recent weakness

by admin November 24, 2024
November 24, 2024
Top 3 reasons why I’m buying Reddit stock on recent weakness

Reddit Inc (NYSE: RDDT) opened about 8.0% down on Friday after Tencent Holdings unloaded about $88.5 million shares of the forum social network.

The weakness may also be related to a report that Advance Magazine Publishers is considering trimming its position on Reddit as well.

Still, there are three solid reasons to consider loading up on Reddit stock on the recent sell-off. Let’s take a look at each of them individually.

Reddit stock price is backed by solid financials

Reddit has already turned a quarterly profit even though it hasn’t even been a year since it went public.

More importantly, the forum social network is attracting users at an unparalleled rate. Its daily active users went up another 47% on a year-over-year basis to 97.2 million in Q3.

That’s significant since more users will likely drive more advertisers to the platform – and more advertisers will continue to drive the company’s bottom line over the coming quarters.

Reddit topped Street estimates for all metrics in its latest report. Profit, revenue, daily active users, average revenue per user, you name it – this company surpassed all of them in Q3.

That speaks volumes about the state of business and what the future may hold for Reddit stock.

RDDT could benefit from AI tailwinds

Reddit stock is trading at a significant premium at writing but it may continue to justify it as RDDT is uniquely positioned to benefit from the AI frenzy.

On top of stealing ad spend from X (formerly Twitter), it’s selling data to big tech names and helping them train their large language models.

Reddit already has a deal in place with Google and OpenAI – and will likely secure similar deals with others as users continue to register on its online platform over the next few quarters.

Note that Statista estimates the artificial intelligence market to grow at a compound annualized rate of over 28% through the end of this decade which confirms AI as a meaningful potential tailwind for RDDT.

Reddit stock does not, however, pay a dividend.

Reddit is catering to an international audience

Reddit is also tapping on artificial intelligence to translate the wealth of data on its forum social network from English to a whole bunch of other languages.

That exposes it to an international audience and positions it to become a significantly bigger platform over the next five years. Steve Huffman – the company’s chief executive told investors in the earnings press release last month:

Reddit continues to be one of the most visited and trusted sites in the world with opportunities available to us that aren’t available to most companies.

Wall Street currently has a consensus “overweight” rating on Reddit stock, suggesting they continue to see further upside despite its massive year-to-date run.  

The post Top 3 reasons why I’m buying Reddit stock on recent weakness appeared first on Invezz

0
FacebookTwitterGoogle +Pinterest
previous post
TJX sees opportunity in Trump’s tariff chaos as rivals brace for price hikes: here’s why
next post
Trump’s energy pick, Chris Wright, argues fossil fuels are key to ending global poverty

Related Posts

US senators make new push to make daylight...

March 10, 2024

House committee sets up vote to expand Section...

April 13, 2024

Pentagon comes under fire after releasing report of...

February 27, 2024

Tony Bobulinski attorney accuses Oversight Dems of ‘gaslighting,’...

February 16, 2024

Trump campaign accelerates vetting of potential running mates

June 7, 2024

AOC, ‘baby girl’ Marjorie Taylor Greene trade barbs...

May 18, 2024

GSK shares surge around 6% as drugmaker raises...

February 5, 2025

RFK Jr. says Biden ‘much worse’ threat to...

April 3, 2024

The veepstakes goes ‘Apprentice’: Will Trump really pick...

June 27, 2024

Obama offers statement of support after Biden drops...

July 22, 2024

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Latest News

    • GMS stock jumps 29% on takeover interest from Home Depot, QXO, analysts raise PTs

      June 22, 2025
    • Japan’s rice price surge: what’s driving it and why it could spark a political crisis

      June 22, 2025
    • BofA raises STOXX 600 target amid resilient global growth, warns on Mideast risks

      June 22, 2025
    • Palantir co-founder: US must prevent Iranian nukes

      June 22, 2025
    • Fed governor Waller advocates for July rate cut amid tariff, labor market outlook

      June 21, 2025

    Categories

    • Business (3,209)
    • Investing (2,537)
    • Latest News (2,000)
    • Politics (1,530)
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: americaninvesthub.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 americaninvesthub.com | All Rights Reserved