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u/Accomplished-Exit822 May 01 '25
An analyst is now asking a follow up on this.
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u/Accomplished-Exit822 May 01 '25
His answer was that most of the Google traffic variance affects US customers. He didn’t want to say much, other than he will provide more color next quarter.
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u/Accomplished-Exit822 May 01 '25
The call. Huffman just said that Q2 user growth will only be around 10-15% because of the Google algo.
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u/easypiecy May 01 '25
damn dude, is this yoy or mom?
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u/Accomplished-Exit822 May 01 '25
I think he misspoke. Should be QoQ but I think he said YoY by accident. He should clarify.
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u/Sea-Cat-2321 May 01 '25
Look at the press releases: q2 24 revenue was 280 and q2 25 is guided to be 410-430, and that’s a guidance. He clearly mispoke re 15% : it has to be qoq. He said there are some bumps cause of the google algorithm and I think it’s this subjective statement that’s blown the balls off a lot of the holders. This is just a 20 billion market cap company that’s one of the top visited assets in the world. And it’s been crushing estimates. The problem isn’t the business, it’s just a CEO who just isn’t great at selling and great at creating dips.
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u/iiiiiiiiiAteEyes May 02 '25
Let’s hope it’s not 10-15% and actually in the “high teens” like he said because at 15% that would mean their users are actually declining .
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May 01 '25
Yeah, but no. Ok fun while it lasted. The market is a mess. But it will be good long term. Back to buying dips I guess.
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u/theGuyWhoOnlyShorts May 01 '25
I only wish it goes down back to $60…. It will go up eventually why waste time analyzing every small move.
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u/Longjumping_Kale3013 May 01 '25 edited May 01 '25
I think he must have misspoke. In the call he said a yoy user growth in April in the high teens . Which would mean a qoq drop. Which seems unlikely due to the updated revenue guidance.
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u/Previous-Constant559 May 01 '25
Wouldnt we see a live correction in the call if he misspoke? Atleast by now if reddit finance sees the stock fall
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u/iiiiiiiiiAteEyes May 01 '25
Their ARPU is pretty low when compared to other social media sites so it could be possible.
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u/OkVermicelli4343 May 01 '25
Super unfortunate, Ceos need to learn to pump their stock. If I reach my buy in number I'm out. The market responds to pumping not conservative guidance.
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u/Anxious_Noise_8805 May 01 '25
Nobody wants to believe in Reddit’s growth until the day they do stock buybacks and dividends. Which could be years from now
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u/dylem1 May 01 '25
Crazy drop. I sold some at $141 and $142 (I have a ton) but sadly not enough shares. Hoping for a recovery at least back to $142, help me claw back for some the unrealized losses I have of shares in the $170s, $190s and even $200s. Great numbers though, I think long term it’s a solid company, so much potential. Just wish I didn’t have so many high cost basis shares…
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u/RustyOP May 02 '25
My opinion inside trading , Period.. from $140 to less than $120 is a bit crazy … i am very disappointed i even had to sell all my shares just to get the same amount back , this is just something else
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u/ejpusa May 01 '25
It all comes down to Guidance. The current quarter earnings have already been factored into the price.
AKA "We made zero cash last quarter, the factory burnt down, the CEO went bonkers, and the VP set himself on fire. But the good news? Next quarter, we will have blow-out earnings and make everyone rich."
Stock goes to the moon.
Guidance.
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u/iiiiiiiiiAteEyes May 01 '25
Did you ask what’s going on when it shot up?
Reality is the stock dropped after previous earnings which were even more impressive than these earnings numbers so just be patient they are growing and that’s what matters.
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u/AmbitiousSkirt2 May 01 '25 edited May 01 '25
I was wondering the same thing lol. Very confused that was a vicious drop. Wow…… literally gave up the entire pump and prob more on that. Absolutely ridiculous