Reddit (RDDT) shares were lower late Tuesday night despite social media company reported second quarter revenue that beat expectations and a narrower-than-expected loss. Revenue grew 54% year-over-year
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Reddit said it lost 6 cents per share on revenue of $281.2 million for the quarter ended June. Analysts on average had predicted the San Francisco-based company would lose 32 cents per share on revenue of $254 million, according to FactSet.
This is the second time Reddit has reported profits since its IPO in March. Reddit lost $10.1 million in the second quarter, compared to a loss of $41 million in the same period a year earlier.
For the current quarter, Reddit forecast revenue of $300 million. Before the company released its results, analysts predicted that the social media company is expected to generate revenue of $282 million for the quarter ending September, according to FactSet.
On the stock market today, Reddit stock is down more than 2% to 53 points after recent trading hours.
More earnings news coming soon.
Reddit Stocks: Strong Relative Strength Score
Before the earnings, Reddit shares fell 4% in regular trading on Tuesday. Reddit shares have traded with volatility in their time on the market, but the stock is up 13% from Reddit’s closing price on its first day in late March.
In the report, Reddit stocks had an IBD Composite Rating of 62 out of a possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Additionally, Reddit’s IBD Relative Strength Rating was 86 out of 99. The RS rating means that Reddit has outperformed 86% of all stocks in IBD’s database over the past year.
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