Wednesday’s hottest stocks are a mixed back of speculative trades and surprises. Last night, Reddit (RDDT) posted an $8.19 GAAP EPS loss. Revenue rose sharply by 48.4 Y/Y to $243 million.
RDDT stock rallied by nearly 15% after posting a good quarterly report. It incurred one-time IPO-related expenses. Without that, Reddit posted a profitable first quarter on an adjusted EBITDA basis.
Cofounder and CEO Steve Huffman said that this is the beginning of a new chapter as Reddit works towards building the next generation of Reddit.
Ride-hailing firm Lyft (LYFT) will rally by over 5% this morning. The firm posted revenue of $1.3 billion, up by 30% Y/Y. It lost 8 cents a share (GAAP). Rides grew by 23% Y/Y to 188 million. In Q2, it expects an adjusted EBITDA of $95M - $100M. For 2024, ride volumes will grow in the mid-teen percentage Y/Y.
Expect competitors like Snap (SNAP), Meta Platforms (META), and Pinterest (PINS) to rally today.
Beware of Peloton
Peloton (PTON) is the poster child of the pandemic bubble. The stock traded at over $150 in 2020. Yesterday, shares gained 15.54% on reports of private equity buyout interest. Short-sellers have too big a position against the stock at 15.6%. The stationary bike model is not viable. Expect bears to increase their bet against Peloton.
