Reddit Inc. experienced a significant 17% drop in after-hours trading following its fourth quarter earnings report, which mixed results prompted disappointment among investors. The company's revenue reached $427.7 million, surpassing Wall Street's forecast, although its earnings per share of $0.36 did not meet the anticipated $0.48. Daily active users also fell short of expectations. However, Reddit's positive guidance for the first quarter offers optimism, projecting higher revenues and adjusted earnings compared to analyst estimates, supported by its successful digital advertising business and strategic partnerships with AI companies like OpenAI and Google.
Reddit's stock fell 17% after fourth quarter earnings showed mixed results; while revenue exceeded forecasts, earnings per share disappointed and user growth was lower than expected.
Despite Q4 earnings below expectations, Reddit's first quarter guidance surpasses projections, indicating strong revenue potential driven by its successful advertising strategies.
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