Reddit Inc Class A Shares

RDDT: XNYS (USA)
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Reddit Earnings: Strong Momentum Continues, Delivers on Growth and Profitability Amid Macro Tensions

Narrow-moat Reddit reported solid fiscal first-quarter results, with both revenue and profitability exceeding expectations. Shares traded 7% higher on the strong results as well as management guiding to a midpoint 50% year-on-year top-line growth for the next quarter. However, we believe demand uncertainty could lead to weaker near-term growth prospects amid a volatile macroeconomic environment, something that Reddit’s peers like Snapchat alluded to this past week.

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