Reddit Inc Class A Shares
RDDT: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| LOCK|$M | LOCK|!%&G | LOCK|LZ>%%@C |
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.
