What to know as Reddit prepares to sell shares

0/5 Votes: 0
Report this app

Description

When markets reopen Monday, traders will again grapple with significant turbulence as stocks and bonds whipsaw on the latest trade war developments. The benchmark S&P 500 index is down nearly 6% in April, which would be the worst monthly loss since November 2022. The NYSE observes most federal holidays and closes for New Year’s Day, Martin Luther King, Jr.

  • This is a big opportunity, and its translation machine learning should help drive more international users over time.
  • According to recent reports, X is looking to raise capital by selling stakes valuing the company at $44 billion — the same price that Tesla CEO Elon Musk acquired the business at in 2022.
  • According to reports, Morris feels that Reddit will benefit from general growth in social media usage.
  • Growth-dependent tech stocks are seeing big pullbacks today after Walmart issued sales guidance that prompted an uptick in macroeconomic concerns.
  • It also has excellent potential to boost its ad revenue and will have opportunities to earn more coin from activities such as data licensing.

The slight miss in daily active users looks largely due to the Google algorithm change that was a disruption late in the quarter. The Motley Fool has positions in and recommends Tesla and Walmart. 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. Our community is about connecting people through open and thoughtful conversations. We want our readers to share their views and exchange ideas and facts in a safe space. U.S. Bond markets are also closed, having actually closed early Thursday at 2 p.m.

What’s a dead cat bounce? Six terms to know for the trade war

J.P. Morgan was impatient with acquaintances who wished to compress all these considerations into a daralarkan single all-purpose maxim. A friend once told him that he was so worried about his stocks that he couldn’t sleep at night and asked what he should do. Morgan’s reply may be apocryphal, but it encompasses the truism that investors should divorce their emotional response to the markets from the cold analysis that should underlie investment decisions, if possible. For those in or near retirement, the environment may look more worrisome.

Moat of the stocks i own fell 20%, 30% in a matter of 1-2 months and i don’t understand what’s happening. I have doubts on how effective advertising will prove over time compared to Reddit’s peers. As a primarily text-driven platform, it just isn’t as impactful, in my view. All markets are scheduled to follow regular operating hours the day after Easter, on April 21.

Reddit is preparing to sell shares to the public. Here’s what you need to know

To exploit this, we’ve formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system. The company’s shares have seen a decrease of 24.54% over the last month, not keeping up with the Computer and Technology sector’s loss of 5.94% and the S&P 500’s loss of 3.59%. The idea, born on the social platform Reddit, led to nationwide mobilization on Feb. 5, urging supporters to rally at the nation’s capitals days after Trump’s inauguration. Rallies across the nation on April 5 purportedly drew crowds that reached 5.2 million, the group posted on Instagram. Meanwhile, the smaller category of “other revenue” soared 547% higher.

  • Unfortunately, the company paired the strong Q4 print with forward revenue guidance that raised concerns about the health of the economy and triggered sell-offs for the broader market.
  • Also, somewhat atypically for a tech stock, Reddit has been profitable lately.
  • In 2010, after deploying billions during the financial crisis, Buffett formalized this strategy in his shareholder letter, pledging to maintain at least $10 billion in cash reserves (though typically keeping closer to $20 billion).
  • Any recent changes to analyst estimates for Reddit Inc. should also be noted by investors.
  • The company’s earnings per share (EPS) are projected to be $0.02, reflecting a 93.1% decrease from the same quarter last year.
  • Stock markets will be closed on Good Friday, just ahead of Easter Sunday.

Will markets be open the day after Easter?

Berkshire’s massive cash position—often criticized during bull markets—transforms from a liability into Buffett’s secret weapon during crashes. In 2010, after deploying billions during the financial crisis, Buffett formalized this strategy in his shareholder letter, pledging to maintain at least $10 billion in cash reserves (though typically keeping closer to $20 billion). This wasn’t excessive caution but strategic preparation for the next inevitable market panic. Notable exceptions are Japan and mainland China stock markets, which will remain open as usual. Overall, if Reddit can continue its strong user growth and capitalize on its international opportunity, the stock should have some solid upside from here.

According to reports, Morris feels that Reddit will benefit from general growth in social media usage. It also has excellent potential to boost its ad revenue and will have opportunities to earn more coin from activities such as data licensing. This also may be a time to look at IRA to Roth conversions because your stocks are down. It’s a great time to do that or potentially tax-loss harvesting if you want to sell some stocks in a brokerage account. Investopedia asked Falcon how 401(k) investors on the cusp of retiring can deal with tariff-related stock market volatility. The next scheduled break bitbuy review is Memorial Day, which falls on Monday, May 26, to kick off the summer trading holidays with both stock and markets closed.

Services

On March 10, the Dow Jones industrial average fell 890 points, or 2.8%; the broader Standard & Poor’s 500 index fell by 2.7% and the Nasdaq composite index, which tracks tech stocks, fell 4%. The day before, Trump had refused to rule out that his economic policies how to make money investing in real estate might produce a recession. That said, it may be useful to place the most recent stock market action in perspective.

Zacks Mobile App

It’s fair to expect that Trump’s policies will have an effect on economic growth, including in California. A favorite insight by economists and business leaders is that what he’s done so far is inject “uncertainty” into economic planning. Below, we break down the principles that have kept Buffett successful through several market crashes. Privacy Policy | No cost, no obligation to buy anything ever.Past performance is no guarantee of future results.

About 4.1 million Americans will turn 65 this year, and they may need to make some changes to their retirement plans, said Jake Falcon, CEO of Falcon Wealth Advisors. That suggests that the waiting period will last only until the picture of Trump’s policies becomes clearer (assuming that it will in time). The stock market, after all, is a mechanism to gauge future expectations. No one can be sure, however, how far it is looking ahead — only that it generally looks further ahead than tomorrow.

Reddit Inc. (RDDT Quick QuoteRDDT – Free Report) closed the most recent trading day at $125.43, moving +0.39% from the previous trading session. The stock’s change was more than the S&P 500’s daily gain of 0.16%. At the same time, the Dow added 0.01%, and the tech-heavy Nasdaq gained 0.46%. Shares of Reddit (RDDT 0.69%) soared to the skies on Wednesday.

Over the course of 2024, the S&P 500 index generated a return of 17.7%. That represented an above-average year for the benchmark index. By contrast, however, shares of Reddit (RDDT 0.69%), which debuted on the stock market in March 2024, advanced 262%, and are up another 18% so far in 2025. The company has also developed a new AI product for users called Reddit Answers that can help users get answers to a variety of questions, such as when is the best time to visit a location for vacation or how to cook a certain meal. It said users are asking the new AI solution everything from parenting advice to product recommendations. Reddit management said improving its search tools through AI and using machine learning to translate its content into other languages is a priority.

See More Zacks Research for These Tickers

Don’t hesitate to tell us about a ticker we should know about, market news, or financial education.Check out our WIKI that has beginner & advanced topics on both investing & trading. This subreddit’s purpose is to analyze, discuss, and participate in stock market related areas. Google made some changes to its algorithm that led to Reddit nearly doubling its size in the past 18 months. However, the analysts argue that most of this growth is from users looking to answer a specific question and don’t convert to logged-in users, who are ultimately much more valuable. The social media platform received pretty dim coverage from Wall Street analysts.

His implication that “euphoric markets” invariably produce financial crises, however, is questionable — markets can sustain their euphoria for years without provoking anything like a crisis. A look at the S&P 500 Index’s long-term performance proves his point—despite countless sell-offs, recessions, and geopolitical crises, $100 invested in 1928 would be worth over $982k today. A newsletter built for market enthusiasts by market enthusiasts. Top stories, top movers, and trade ideas delivered to your inbox every weekday before and after the market closes.

Walmart published its fourth-quarter earnings results before the market opened this morning and posted sales and earnings for the period that topped Wall Street’s forecasts. Unfortunately, the company paired the strong Q4 print with forward revenue guidance that raised concerns about the health of the economy and triggered sell-offs for the broader market. If you see no movement in your 401(k) or brokerage accounts Friday, it’s not a sign of suddenly perfectly priced assets, as most financial markets globally will take a breather. First and foremost, Reddit demonstrated a healthy market appetite for digital advertising services after a long downturn. Second, the data licensing business emerged as a high-octane growth driver. The Motley Fool has no position in any of the stocks mentioned.