Reddit shares have fallen 27% year-to-date even as revenue grew 69% and the company beat earnings estimates for five straight quarters, setting up a closely watched second-quarter report on July 30. The social-media platform posted first-quarter revenue of $663.41 million, with advertising sales accelerating 74% and adjusted EBITDA margin reaching 40.1%, while free cash flow hit $311.16 million on just $1.09 million in capital spending. Reddit also announced a new $1 billion share-buyback authorization, and analysts’ average price target of $227.30 implies roughly 30% upside from the current price of $174.38. By comparison, Pinterest grew first-quarter revenue 17.8% and posted a GAAP net loss of $73.59 million, while Snap’s revenue rose 12.15% with a net loss of $88.95 million. Second-quarter guidance calls for revenue of $715 million to $725 million and adjusted EBITDA of $285 million to $295 million, with Polymarket odds of an earnings beat at 93%.
Reddit, Inc.strong revenue growth, earnings beats, new $1B buyback, and analyst upside
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