By John Meyer, consultant in financial affairs – Eurasia Business News, February 12, 2025. Article No 1411.
Reddit Inc (NYSE:RDDT) reported a better than expected fourth-quarter earnings helped by user growth and higher advertising revenue. Despite this growth, Reddit’s stock (NYSE: RDDT) experienced a significant decline on Wednesday, February 12.
Share Price Drop: Reddit’s shares fell more than 15%, closing at $216.96, after closing at $224.93 the previous day. The stock price at 15:59 was $216.47.
User Growth: The drop occurred despite analysts’ expectations of growing revenue and users. Projections estimated 103.24 million daily active users, up from 73.10 million a year prior.
Earnings Report: Reddit announced a net income of $71.0 million, with diluted earnings per share (EPS) of $0.36. This topped the consensus estimate of $0.24. Revenue grew 71% year-over-year to $427.7 million. Daily active users increased 39% year-over-year to 101.7 million.
Analyst Ratings: Despite the stock drop, Reddit has an average rating of “Moderate Buy” among analysts, with an average price target of $206.
Analyst Expectations: Analysts had expected revenue of $408.92 million and daily active users of 103.24 million.
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Market Performance: Before the decline, Reddit’s stock had surged nearly sevenfold from its IPO price in March 2024.
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© Copyright 2025 – Eurasia Business News. Article no. 1412.
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