Reddit Stock Dips Ahead Of Q3 Earnings: What's Going On?

Reddit Inc (NYSE:RDDT) shares are trading lower Thursday morning as investors await its third-quarter financial results, scheduled for release after the market close. Here’s what investors need to know.

• RDDT stock is struggling to find support. Get the details here.

What To Know: Wall Street has set a high bar for the social media platform, with consensus estimates calling for earnings of 50 cents per share on revenue of $545.5 million. This represents a jump from the 16 cent EPS and $358.4 million in revenue reported in the same quarter last year.

The company enters the report with strong momentum, having beaten analyst estimates on both revenue and earnings for six consecutive quarters since going public. Analyst sentiment remains largely bullish, with firms like Citigroup, Raymond James and Truist Securities raising their price targets on the stock in October.

The report follows recent news that Reddit is suing AI firms, including Perplexity, for illegally scraping its data. Investors will be closely watching for continued growth in advertising revenue and commentary on its data licensing strategy to see if the company can deliver its seventh straight beat.

Benzinga Edge Rankings: Highlighting its recent performance, Benzinga Edge rankings give the stock a strong Momentum score of 91.18, despite a negative short-term price trend.

RDDT Price Action: Reddit shares were down 4.37% at $201.56 at the time of publication on Thursday, according to Benzinga Pro data.

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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.

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