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Reddit’s second-quarter 2024 top-line growth is expected to have benefited from an expanding daily active uniques (DAUq). Improvement in search engine results powered by AI and machine learning is expected to have driven DAUq in the second quarter.
RDDT’s social media platform offers communities covering different topics. In the first quarter, DAUq increased 37% year over year to 82.7 million and Weekly Active Uniques rose 40% year over year to 306.2 million. This trend is expected to have continued in the to-be-reported quarter.
In the to-be-reported quarter, the company entered into a partnership with OpenAI. This partnership enables Reddit to bring new AI-powered features to redditors and mods. RDDT will be building on OpenAI’s platform of AI models to bring its powerful vision to life. This is expected to aid the company’s top-line growth in the second quarter.
Reddit’s partnership with Google reflects the growing value of data, which is used for the purpose of AI model training. However, stiff competition for ad dollars has been a headwind.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Reddit has an Earnings ESP of +1.01% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
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Reddit (RDDT) to Report Q2 Earnings: What's in the Cards?
Reddit (RDDT - Free Report) is scheduled to report second-quarter 2024 results on Aug 6.
The Zacks Consensus Estimate for second-quarter 2024 loss is pegged at 31 cents per share, which has narrowed by 2 cents in the past 30 days.
The consensus mark for revenues is pegged at $254.92 million. The company expects revenues in the range of $240-$255 million in the second quarter.
Let’s see how things have shaped up for the upcoming announcement.
Reddit Inc. Price and EPS Surprise
Reddit Inc. price-eps-surprise | Reddit Inc. Quote
Factors to Note
Reddit’s second-quarter 2024 top-line growth is expected to have benefited from an expanding daily active uniques (DAUq). Improvement in search engine results powered by AI and machine learning is expected to have driven DAUq in the second quarter.
RDDT’s social media platform offers communities covering different topics. In the first quarter, DAUq increased 37% year over year to 82.7 million and Weekly Active Uniques rose 40% year over year to 306.2 million. This trend is expected to have continued in the to-be-reported quarter.
In the to-be-reported quarter, the company entered into a partnership with OpenAI. This partnership enables Reddit to bring new AI-powered features to redditors and mods. RDDT will be building on OpenAI’s platform of AI models to bring its powerful vision to life. This is expected to aid the company’s top-line growth in the second quarter.
Reddit’s partnership with Google reflects the growing value of data, which is used for the purpose of AI model training. However, stiff competition for ad dollars has been a headwind.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Reddit has an Earnings ESP of +1.01% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
Shopify (SHOP - Free Report) has an Earnings ESP of +7.78% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have plunged 21.4% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
DigitalOcean (DOCN - Free Report) has an Earnings ESP of +2.19% and flaunts a Zacks Rank of 1 at present.
DigitalOcean’s shares have lost 9.7% year to date. DOCN is set to report its second-quarter 2024 results on Aug 8.
MKSI (MKSI - Free Report) has an Earnings ESP of +7.28% and sports a Zacks Rank #1 at present.
MKSI’s shares have gained 22.4% year to date. MKSI is set to report second-quarter 2024 results on Aug 7.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.