Imagine a company that reports eight straight quarters of 60% revenue growth, beats its earnings-per-share (EPS) estimates by 30%, and raises its next quarter guidance above Wall Street estimates. You might expect the stock to soar 20% following that release, right?
Well, that’s exactly what Reddit Inc. (NYSE: RDDT) reported to the market last week, and the stock didn’t gain 20%; it dropped 20% the following morning. The EPS and revenue figures masked a concerning decline in U.S. metrics, prompting a swift re-rating from both analysts and investors. Can Reddit stem this user deterioration without losing its monetization success?
