Reddit (RDDT) Stock Pops 9% as Wall Street Shrugs Off Google Deal Worries
TLDR
- Reddit stock rose 9.3% to $158.10 on Wednesday, making it one of the top performers in the S&P 500
- Baird analyst Colin Sebastian said the market has already priced in a weak or flat renewal of Reddit’s Google data deal
- The Google data licensing contract, worth about $130 million in revenue, expires early next year
- Reddit posted strong Q2 earnings with EPS of $1.25 vs $0.95 expected, and revenue up 61% year over year to $804.91 million
- Analysts hold a consensus “Moderate Buy” rating with an average price target of $221.10
Reddit (RDDT) stock jumped 9.3% to $158.10 on Wednesday, landing it as the second best-performing stock in the S&P 500 for the day.
The move came after Baird analyst Colin Sebastian said the market has already “largely priced in” a weak or flat renewal of Reddit’s data licensing deal with Google. In plain terms, even if the deal comes back smaller, the stock likely won’t take a big hit.
That contract, which brings in around $130 million in annual revenue for Reddit, is due to expire early next year. Renewal talks are ongoing.
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