Reddit (RDDT) Stock Is Down 9% Thursday: What's Going On?

Reddit Inc RDDT shares fell 9.4% to $113.55 on Thursday, pulling back after a recent rally that had lifted the stock more than 25% over the past month. The decline follows a 9.2% jump on Wednesday, fueled by the company's strong first-quarter earnings and upbeat outlook.

What To Know: Reddit recently posted first-quarter earnings of 13 cents per share, beating consensus estimates of 2 cents. Revenue hit $392.36 million, up from $242.96 million a year ago, driven by a 61% surge in ad revenue and a 31% increase in daily active users to 108.1 million.

Net income reached $26.2 million, reversing a $575.1 million loss a year prior. Operating cash flow rose to $127.6 million, while gross margin improved to 90.5%.

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CEO Steve Huffman touted weekly active users exceeding 400 million, and Reddit guided second-quarter revenue between $410 million and $430 million. Analysts responded positively: Seaport upgraded Reddit to Buy, Needham and JP Morgan raised their price targets, and consensus remains optimistic on long-term growth.

What Else: Meanwhile, the Kids Online Safety Act was reintroduced in the Senate this week. The bill would impose new safety requirements on platforms used by minors and has drawn both support and criticism, with tech firms like Apple Inc backing the measure and civil liberties groups voicing concern over potential censorship.

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How To Buy RDDT Stock

Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.

For example, in Reddit’s case, it is in the Communication Services sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.

According to data from Benzinga Pro, RDDT has a 52-week high of $230.41 and a 52-week low of $49.13.