Reddit Inc. (NYSE:RDDT) has projected third-quarter revenue that surpasses Wall Street's expectations, indicating a rebounding digital ad market. However, the stock experienced a decline in extended trading.
What Happened: Reddit's forecast for the third quarter, its second since going public in March, suggests a resurgence in the digital ad market, attracting more advertisers to the platform, reported Reuters.
Analysts have attributed the stock's decline to the upcoming end of the pre-IPO lockup for private or pre-IPO investors on Friday. Additionally, the stock's low average revenue per user (ARPU) growth and the conservative quarterly forecast have also been cited as reasons for the downturn.
Despite these factors, Reddit's earnings have sparked optimism about the company's content licensing deals with Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Microsoft Corp. (NASDAQ:MSFT) backed OpenAI.
Reddit's CEO, Steve Huffman, announced plans to test new AI-powered search results later this year. The company expects its third-quarter revenue to be between $290 million and $310 million, compared to analysts' average estimate of $278.7 million, according to LSEG data.
"(This) is probably a 'sell the news' reaction to get out of the stock ahead of this Friday, when the pre-IPO lockup ends for private or pre-IPO investors," Michael Ashley Schulman, Chief Investment Officer, Running Point Capital said.
Why It Matters: Reddit's forecast comes on the heels of a strong second-quarter performance, where the company reported a revenue of $281.2 million, a 54% increase from the previous year.
The company's daily active unique visitors also rose by 51% to 91.2 million in the second quarter, while its global ARPU increased by about 2% to $3.08. Despite these positive results, the company's shares experienced a decline in extended trading.
Reddit's strong performance in the second quarter showed a significant increase in daily active unique users by 51% year-over-year. This growth in user engagement is crucial for attracting advertisers, which is a key revenue stream for the platform.
In May, JPMorgan highlighted Reddit's enhanced advertising tools as drivers for "sizable upside." The company's first-quarter results had already surpassed expectations, setting a positive tone for subsequent quarters.
Furthermore, the debate about Reddit's value underscores the platform's potential and the high expectations from its user base and investors.
Price Action: Reddit Inc. closed at $54.36 on Tuesday, down 4.31%. In after-hours trading, the stock continued to decline, falling by an additional 4.53%. However, year to date, Reddit Inc. has seen an overall increase of 7.77%, according to data from Benzinga Pro.
- Strategist Warns 'There's A Serious Collapse That's Coming' After Monday's Global Market Crash: 'Tons And Tons Of Yen Carry Trades...Have To Be Closed Out'
Image Via Shutterstock
This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
纽交所的Reddit公司（NYSE：RDDT）预计第三季度的营业收入将超过华尔街的预期，表明数字广告市场正在复苏。然而，该股票在延长的交易中出现了下跌。
发生了什么：据路透社报道，Reddit对第三季度的预测是自3月份上市以来的第二次预测，表明数字广告市场正在复苏，吸引更多的广告商进入该平台。
分析人士将该股票的下跌归因于周五即将结束的私募或上市前投资者的解禁。此外，股票的用户每月平均收入增长率下降和保守的季度预测也被认为是下跌的原因。
尽管存在这些因素，Reddit的业绩还是激发了人们对该公司与Alphabet Inc.（纳斯达克代码：GOOGL）（纳斯达克代码：GOOG）和Microsoft Corp.（纳斯达克代码：MSFT）支持的OpenAI进行内容许可协议的乐观情绪。
Reddit的首席执行官Steve Huffman宣布计划于今年晚些时候测试新的人工智能搜索结果。根据LSEG数据，该公司预计第三季度营业收入为2.9亿到3.1亿美元，而分析师的平均预期为2.787亿美元。
“（这）很可能是在本周五私募或上市前投资者解禁前退出股票的‘卖出新闻’反应，”Running Point Capital首席投资官Michael Ashley Schulman表示。
Reddit在第二季度表现强劲，公司报告营收为2.812亿美元，同比增长54%。
公司的每日活跃独立访问者在第二季度增长51%至9120万，而全球ARPU增长约2%，为3.08美元。尽管有这些积极的结果，该公司的股票在延长的交易中下跌了。
Reddit在第二季度表现强劲，每日活跃独立用户同比增长51%。这种用户参与度的增长对于吸引广告商非常关键，同时也是该平台的主要收入来源之一。
摩根大通在5月份强调了Reddit强化的广告工具带来的“可观上涨”机会。该公司在第一季度的业绩已经超过了预期，为随后的季度设定了积极的基调。
此外，Reddit价值的争议凸显了该平台的潜力以及其用户基础和投资者的高期望值。
股票买卖行为：Reddit Inc.周二收盘价为54.36美元，下跌4.31%。在盘后交易中，该股票继续下跌，下跌了另外4.53%。然而，根据Benzinga Pro的数据，Reddit Inc年初至今的整体增长为7.77%。
图片来自Shutterstock。
本报道使用Benzinga Neuro生成，并由Kaustubh Bagalkote
