Ticker (Exchange) – RDDT (NYSE)
ISIN - US75734B1008
Current price – $58.3
Target price – $67
Growth potential – 14.9%🔥
Investment horizon – 1 year
Reddit is an American company that operates the social network of the same name. The company went public in March 2024, and the IPO was highly successful. The company was valued at $6.4 billion, or $34 per share. Currently, Reddit's market capitalization has reached $9.8 billion. The company is showing strong financial performance and has potential for further growth. The fair value of Reddit's shares is estimated at $67, with an upside of 14.9%.
Investment thesis
🔼 Strong financial performance. Reddit reported solid results for Q2 2024. The company's revenue surged by 54% y/y, reaching $281 mln. Net loss decreased from $41.1 mln to $10.1 mln, or $0.06 per share. Both figures significantly exceeded market forecasts. Revenue from online advertising increased by 41% y/y, driven by the recovery of the advertising market after the slump in 2022. Other income jumped by 691%. The number of daily active users of the social network grew by 51% y/y, reaching 91.2 mln, also surpassing market expectations.
🔼 Optimistic outlook. Reddit's partnership with OpenAI, the owner of the popular ChatGPT AI model, opens up promising opportunities for the company in the context of the growing trend toward the adoption of artificial intelligence (AI). For Q3 2024, Reddit plans to increase sales to $290-310 mln, which is above the average analyst forecast.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
ISIN - US75734B1008
Current price – $58.3
Target price – $67
Growth potential – 14.9%🔥
Investment horizon – 1 year
Reddit is an American company that operates the social network of the same name. The company went public in March 2024, and the IPO was highly successful. The company was valued at $6.4 billion, or $34 per share. Currently, Reddit's market capitalization has reached $9.8 billion. The company is showing strong financial performance and has potential for further growth. The fair value of Reddit's shares is estimated at $67, with an upside of 14.9%.
Investment thesis
🔼 Strong financial performance. Reddit reported solid results for Q2 2024. The company's revenue surged by 54% y/y, reaching $281 mln. Net loss decreased from $41.1 mln to $10.1 mln, or $0.06 per share. Both figures significantly exceeded market forecasts. Revenue from online advertising increased by 41% y/y, driven by the recovery of the advertising market after the slump in 2022. Other income jumped by 691%. The number of daily active users of the social network grew by 51% y/y, reaching 91.2 mln, also surpassing market expectations.
🔼 Optimistic outlook. Reddit's partnership with OpenAI, the owner of the popular ChatGPT AI model, opens up promising opportunities for the company in the context of the growing trend toward the adoption of artificial intelligence (AI). For Q3 2024, Reddit plans to increase sales to $290-310 mln, which is above the average analyst forecast.
To open a brokerage account with Unibank Invest, please fill out the application form or contact us at +374 43 004 382.
Disclaimer
The information provided above is not an investment recommendation and does not guarantee or promise profitability. Before investing, you should assess the potential risks and rewards and determine your willingness and ability to accept such risks.
Unibank OJSC is regulated by the Central Bank of Armenia.
