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Meet the Newest Member of the S&P 500. It's Up 365% Since Its IPO, and It Can Keep Climbing From Here.
The Motley Fool·
Reddit has been added to the S&P 500 mid-quarter and is up 365% since its IPO. Despite strong Q2 earnings with 61% revenue growth and 178% EPS growth, the stock sold off due to declining U.S. daily active users amid AI disruption concerns. However, analysts view this as a buying opportunity, citing attractive 21x earnings valuation, strong user monetization growth (36-51% ARPU increase), and management's ambitious growth targets to 100M U.S. logged-in users.
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