Reddit (RDDT) awarded its shareholders and punished short-sellers yesterday. RDDT stock gained nearly 42% after the company posted third-quarter results. Bears who held a 7.49% short interest will need to cover their bet against the social networking firm.
The company reported a 67.9% Y/Y jump in revenue, beating analyst expectations by 10%. The site attracted 47% more daily active unique users, to 97.2 million. Reddit’s strong momentum should continue: the free site offering is unlike any other platform on the internet.
On Wednesday night, Microsoft (MSFT) fell by 4.1%. Already trading at a premium P/E of 33 times (forward), the software giant reported revenue of $65.59 billion (+16.1% Y/Y). Investors should take advantage of any dip since the smooth recurring revenue increases the firm’s growth predictability.
Meta Platforms (META) might open down by nearly 3% today. Also trading at a premium like Microsoft, but with a forward P/E of 27.7 times, higher AI-related expenses will hurt profits.
In Q3, Meta increased its revenue by 18.9% year over year to $40.59 billion. Its total expenses of $96 billion to $98 billion are within its prior forecast. However, in 2025 costs will rise. Meta expects a significant increase in capital expenditures. The firm needs to accelerate its investments in infrastructure.