News about RDDT

Reddit (RDDT) shares fell 25.27% on Friday to $96.85, even though third-quarter results beat expectations with revenue of $894.96M, up 53% year over year. The main concern was traffic: search referrals fell by more than 1 million per week on average in October, and total daily active uniques could drop by a low double-digit percentage in the fourth quarter. CEO Steve Huffman blamed mostly Google's AI features. The Global X Social Media ETF (SOCL) has Reddit at about 8.46% of net assets, and the fund fell 2.81% in the session. S&P 500 trackers such as VOO and IVV now also hold Reddit, but with small weights, and the article notes that investors combining a core S&P 500 fund with a thematic ETF can own the same stock twice.

This roundup from The Fly compiles notable Wall Street rating changes. Wedbush upgraded DoorDash (DASH) to Outperform with a $230 price target, citing record Q3 results and its $17B acquisition of Instacart (CART). Jefferies upgraded Rivian (RIVN) to Buy with an unchanged $17 price target, while Oppenheimer downgraded Reddit (RDDT) to Perform and removed its price target. Needham downgraded Instacart to Hold after DoorDash agreed to acquire it for $65 per share, and Seaport, Roth and BofA all downgraded Intel (INTC) to Neutral. Bernstein downgraded Alnylam (ALNY) to Market Perform with a $199 price target, and GLJ Research downgraded First Solar (FSLR) to Hold with a $161 price target.

Reddit reports third-quarter results on October 29, with shares down 37.25% year to date and down 7.61% over the past week to $144.25. Last quarter, EPS came in at $1.25 against a $0.9673 consensus, and revenue rose 61% to $805 million. Management guided Q3 revenue to $860 million–$870 million, or 47%–49% growth, while the revenue consensus sits above the top of that range. Reddit Max is seen as a key factor, with advertisers using Max up over 60% from Q1 and Max revenue up over 150%, though U.S. logged-in user growth was just 1% last quarter and search referrals have declined as AI Overviews from Alphabet threaten drive-by traffic.

Meta Platforms rose 4% to $744.72 after third-party data from Sensor Tower showed its AI agent Muse retains 73% of new users the day after install, above ChatGPT's comparable figure, though ChatGPT pulls ahead between the eighth and ninth day. Snap gained 3% to $6.45, while Reddit fell 3% to $155.23 and is down 32% so far this year, with no company announcement explaining the drop. Similarweb data put Muse daily active users at 2.182 million on October 5, but major shopping sites are increasingly blocking AI agents, limiting what Muse can complete. Meta trades at a forward P/E of 22x, below its 52-week high of $779.82. Snap reports earnings on November 4, which could increase share-price volatility.