Reddit, Inc. operates a website that organizes digital communities. It organizes communities based on specific interests that enable users to engage in conversations by sharing experiences, submitting links, uploading images and videos, and replying to one another. The company was founded in 2005 and is headquartered in San Francisco, California.

Reddit, Inc.

Reddit RDDT is set to release its second-quarter 2026 results on July 30, 2026.
For the second quarter of 2026, management expects revenues to be in the range of $715 million to $725 million, representing 43% to 45% year-over-year revenue growth with a midpoint of about 44%. For the second quarter of 2026, the Zacks Consensus Estimate for revenues is pegged at $744.94 million, indicating year-over-year growth of 49.10%.
The consensus mark for earnings is pegged at 99 cents per share, which has been unchanged over the past 30 days. This indicates year-over-year growth of 120%.
RDDT’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 67%.
Reddit Inc. Price and EPS Surprise
Let’s see how things have shaped up for this announcement.
Factors Likely to Have Influenced Q2 Performance
Reddit’s second-quarter performance is expected to have benefited from continued momentum in its advertising business. Advertising revenues grew 74% year over year in the first quarter of 2026, driven by both increased impressions and higher pricing.
The company has invested heavily in its ad stack, particularly in automation and machine learning, resulting in more efficient campaigns for advertisers. The Reddit Max platform, launched in the first quarter of 2026, has already delivered a 17% reduction in cost per action and a 25% increase in conversion outcomes for advertisers. This strong adoption and performance are likely to have carried over into the second quarter of 2026, supporting further revenue growth.
Another significant benefit for the second quarter of 2026 is Reddit’s focus on expanding its user base and increasing engagement. Management has set an ambitious goal to double daily active users in the United States from 50 million to 100 million by leveraging improvements in onboarding, feed quality, and machine-learning-driven personalization. The company has already seen progress in new user retention and search engagement, with search weekly active users up 30% year over year. These efforts are expected to have driven higher user frequency and engagement, which should boost ad inventory and monetization opportunities in the to-be-reported quarter.
Reddit’s unique position in the AI landscape has been a key catalyst. With more than 25 billion posts and comments, Reddit’s authentic human conversations are increasingly valuable for both AI model training and for users seeking genuine perspectives. The company has established important partnerships with major AI players like Google and OpenAI, generating additional revenue streams through data licensing.
However, a challenging macroeconomic environment and seasonal volatility remain a headwind. Stiff competition in the digital advertising market poses a significant challenge for Reddit.
RDDT Shares Underperform Sector
RDDT shares have plunged 22% in the year-to-date period, underperforming the Zacks Computer & Technology sector’s return of 9.9%.
The company’s shares have also underperformed its peers, which include Meta Platforms META, Pinterest PINS and Alphabet GOOGL, which are also expanding their footprints in the digital advertising space. While Meta Platforms and Pinterest shares have lost 10% and 9.2%, respectively, Alphabet’s shares have gained 4.3% in the year-to-date period.
RDDT Stock Performance
Image Source: Zacks Investment Research
RDDT stock is not so cheap, as the Value Score of F suggests a stretched valuation at this moment, which makes it a risky bet for risk-averse investors.
In terms of the forward 12-month Price/Sales, Reddit is trading at 8.95X, higher than the Internet - Software industry’s 3.75X, Meta Platforms 5.32X, Pinterest’s 2.53X, and Alphabet’s 8.06X.
RDDT Valuation
Image Source: Zacks Investment Research
RDDT Benefits From Expanding Portfolio
Reddit’s product innovation remains a core pillar of Reddit’s growth strategy. The company is rolling out new ad formats, such as dynamic product ads (DPA) and collection ads, and integrating with platforms like Shopify to attract more retail and e-commerce advertisers.
These initiatives are designed to capture high-intent shopping conversations, which grew 40% year over year, and improve conversion rates for advertisers. Brands using Reddit’s DPA have seen more than 90% higher return on ad spend compared to previous campaigns. The ongoing expansion of the Reddit for Business ecosystem and the adoption of AI-powered creative tools are expected to further enhance advertiser value in the to-be-reported quarter.
Reddit is benefiting from a robust international expansion strategy that is fueling both its financial performance and long-term growth prospects. One of the key drivers behind this international momentum is Reddit’s investment in machine translation, which has enabled the platform to support content in more than 30 languages, helping to build local communities and increase engagement outside the United States. The company is also investing in features like bot verification, improved onboarding and faster app performance to enhance user experience.
Conclusion
Reddit’s prospects benefit from an expanding advertising business, international expansion, an expanding clientele and rising user engagement.
However, a challenging macroeconomic environment and seasonal volatility are headwinds. Stretched valuation and stiff competition also remain concerns.
Reddit currently has a Zacks Rank #3 (Hold), suggesting that it may be wise to wait for a more favorable entry point to accumulate the stock. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
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Should You Buy, Sell, or Hold Reddit Stock Before Q2 Earnings Release?

Meta Platforms’ META second-quarter 2026 results, set to be reported on July 29, are expected to reflect the benefits of higher advertising revenues, driven by sustained growth in user engagement and ad impressions across its Family of Apps. In the first quarter of 2026, ad impressions increased 19% year over year, supported by user growth, stronger engagement and ad-load optimization. The average price per ad also rose 12%, reflecting improved ad performance, healthier advertiser demand and favorable currency movements.
AI-driven improvements to Meta’s advertising systems are likely to have remained a major growth catalyst in the to-be-reported quarter. Enhancements to the Lattice and GEM models drove a more than 6% improvement in conversion rates for landing-page-view ads, while the Adaptive Ranking Model generated a 1.6% conversion-rate increase across major Facebook and Instagram surfaces. Better ad selection and targeting likely encouraged advertisers to increase spending by improving campaign returns. Increasing adoption of Meta’s generative-AI advertising tools is also expected to have aided second-quarter performance.
The Meta AI business assistant, AI connectors and value-optimization tools are also helping advertisers create content, resolve account issues and improve return on ad spending. Meta is further optimizing when, where and to whom ads are displayed rather than depending only on higher ad loads. Ad-load increases on Instagram Feed and Reels contributed to first-quarter impression growth, although user and engagement gains remained the larger driver. The company’s measured approach to placing ads at more relevant moments is likely to have supported incremental conversions without materially weakening the user experience in the second quarter.
These trends are likely to have continued supporting advertising revenues in the to-be-reported quarter. The Zacks Consensus Estimate for Meta’s second-quarter advertising revenues is pegged at $59.035 billion, indicating growth of 26.8% year over year. Click here to learn how Meta’s overall second-quarter performance is likely to be.
Meta Platforms, Inc. Revenue (TTM)
META’s AI Push to Aid Instagram, Threads and WhatsApp in Q2
Instagram is expected to have benefited significantly from AI-powered recommendation and content-understanding improvements. Ranking enhancements drove a 10% increase in Reels time spent in the first quarter of 2026. Meta doubled the length of user-interaction sequences used to train Instagram models and improved the richness of the data describing each interaction, allowing its systems to better understand users’ interests. Faster indexing and improved content recognition also increased the freshness and diversity of recommendations, with same-day posts accounting for more than 30% of recommended Reels.
AI translation and dubbing are likely to have further expanded Instagram’s content inventory and engagement. More than half a billion users on each of Facebook and Instagram were watching AI-translated videos weekly. Meta’s policy of allowing creators’ videos to reach viewers across different languages and regions means these capabilities are likely to have increased watch time, improved content discovery and created additional advertising opportunities on Instagram during the to-be-reported quarter.
Threads is expected to have benefited from improvements in AI-powered content recommendations, particularly around timeliness, relevance and cultural trends. The platform had more than 150 million daily active users, while Meta continued investing in creator partnerships and priority topics such as sports, entertainment and K-pop. Ads were expanded to more than 200 countries, and improved recommendations are likely to have strengthened user engagement and advertising inventory, although Threads is not expected to be a meaningful contributor to Meta’s overall revenues in 2026.
WhatsApp’s prospects are likely to have benefited from Meta’s AI push through business messaging, Business AIs and the gradual rollout of Status ads. Business AIs were facilitating more than 10 million conversations per week, up from 1 million at the beginning of the year, helping small businesses answer customer questions and engage potential buyers.
The Zacks Consensus Estimate for Meta’s second-quarter Family of Apps revenues is pegged at $59.605 billion, indicating growth of 26.4% year over year.
Zacks Rank & Upcoming Earnings to Watch
Meta currently has a Zacks Rank #3 (Hold).
Reddit RDDT, Arrow Electronics ARW, and HubSpot HUBS are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Reddit, Arrow Electronics and HubSpot are expected to report their quarterly results on July 30, Aug. 6, and Aug. 5, respectively. Shares of Reddit and HubSpot have dropped 22.1% and 44.5%, respectively, while Arrow Electronics has jumped 93.5% year to date.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.
See Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
HubSpot, Inc. (HUBS) : Free Stock Analysis Report
Reddit Inc. (RDDT) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Higher Ad Revenues Aid Meta Platforms Stock in Q2 Earnings?

Key Points
Google is able to train its AI models with content from Reddit due to a prior agreement.
Reddit, however, is having second thoughts about whether that still makes sense.
Reddit (NYSE: RDDT) isn't sure that its current agreement with Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) makes sense anymore. According to a report from the Wall Street Journal, the social media giant is contemplating a significant move: not making its content available for chatbots.
While Alphabet's Google Search does drive a lot of traffic to Reddit, it has also been declining, with users turning more to artificial intelligence (AI) chatbots such as OpenAI's ChatGPT or Alphabet's Gemini for answers. And those chatbots have been trained with online content, including Reddit's popular online message boards.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
A possible change in strategy for Reddit would be a bold move, but I believe it's the right one.
Reddit's revenue growth remains strong, but AI could pose a serious threat
Reddit has a strong brand, with its communities being known for often offering balanced, two-sided arguments on common questions. Unlike a typical search query, which may just provide a direct answer, Reddit can offer more value to people seeking deeper analysis and thought. Due to its popularity, the social media giant has been experiencing significant growth in recent years, with ad revenue accounting for the lion's share of its top line.
The problem with AI chatbots, however, is that they can significantly impact traffic to Reddit if users get more complex answers without visiting the site's forums.
In 2024, Reddit and Google reached a $60 million-per-year deal that would allow Google to train its AI on Reddit's content. However, that may not be worth the long-term risk that it runs to Reddit's business, and it's a small fraction of the $2.5 billion in revenue the company has generated over the past four quarters. Reddit is reportedly considering not renewing its licensing deal.
Is Reddit's stock worth buying right now?
Reddit is right to question whether its AI deal makes sense. It should consider a far more lucrative agreement with Google to compensate it for the current and future traffic losses it may experience. It may simply be that a deal can't be reached, but it needs to protect its business and brand; if users can find the same types of answers from a chatbot, there may no longer be a need to visit Reddit's online communities.
Overall, Reddit's brand still appears strong, and the company does have leverage given the value and wealth of information it offers AI chatbots; I think it would be premature to worry about its business right now. With the stock down more than 20% this year, now may be a good time to buy it on the dip.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $379,662!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,206,116!*
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David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Reddit. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reddit Considers a Bold Move: Cutting Off Google's Access for AI Training

Key Points
Reddit's advertising business has exploded.
AI investors believe it has potential in data licensing.
The company is embroiled in a standoff with Google over content licensing.
Reddit (NYSE: RDDT) may be the most intriguing AI stock on the market.
Unlike semiconductors, software companies, or hyperscalers, Reddit derives its value in AI from its “corpus,” or the body of content on its site, which may be the most valuable source material for generative AI training and inference.
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The vast majority of Reddit’s revenue still comes from advertising, but its potential in data licensing has helped expand the stock’s valuation and attracted AI investors.
The social media company is due to report second-quarter earnings after the market closes on Thursday. Could the stock soar on the news? Let’s take a closer look at what to expect.
Image source: The Motley Fool.
What to expect when Reddit reports
Reddit has delivered phenomenal results since going public in 2024, and its shares are up more than 400% since then. However, the stock has been volatile over the last year, and is actually down 20% year-to-date as it fell sharply in January alongside the broader software sell-off, though it’s much different from a traditional software-as-a-service (SaaS) company.
Additionally, its revenue growth has not dipped below 48% since it went public, and ad revenue growth has been driven by new ad tools and automated ad campaigns, interest in the platform in the AI era, and the high commercial intent of users, as many subreddits focus on product or experience purchases.
After Reddit reported 69% growth in the first quarter, analysts are expecting another strong round of results in Q2, calling for 46.3% top-line growth to $731 million, and for generally accepted accounting principles (GAAP) earnings to more than double from $0.45 to $0.97.
The biggest catalyst to watch
The biggest issue facing Reddit right now is its standoff with Google over data licensing. The two companies have been renegotiating their $60 million-a-year deal as Reddit is wary of Google scraping its site and then using that information to direct users to Google’s AI Overviews, rather than to Reddit’s site. Reddit reportedly wants a usage-based fee from Google, unsatisfied with the current agreement.
Reddit stock fell 9% in a single session last week after The Wall Street Journal reported that the company had considered cutting off Google’s access to its content as part of its negotiations, suggesting investors are fearful of any fallout.
Expect plenty of questions on theearnings callabout the relationship with Google, as Reddit could bring in significantly more cash if it secures usage-based fees or a similarly favorable deal from Google. Google’s shift to AI summaries has cannibalized traffic for media partners like Reddit, so the current system may be untenable.
Why the stock could pop
Digital advertising growth remains strong as Alphabet just reported 14% advertising growth in the second quarter. Reddit also has a history of lowballing guidance, meaning it could easily beat expectations in its second quarter. If it can do that, offer solid guidance, spin the Google news in a positive way, and signal more potential growth for the data licensing business, the stock could move significantly higher on Thursday.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
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*Stock Advisor returns as of July 27, 2026.
Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet and Reddit. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reddit Inc's Next Earnings Report on July 30 Could Send the Stock Soaring. Here's Why.

The company might lose a lucrative revenue source.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
*Stock prices used were the afternoon prices of July 24, 2026. The video was published on July 26, 2026.
Should you buy stock in Reddit right now?
Before you buy stock in Reddit, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Reddit wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Reddit. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Huge News for Reddit Stock Investors

In this video, I will cover four stocks I believe are worth buying before their upcoming earnings reports and explain the catalysts that could move each one. Watch the short video to learn more, consider subscribing, and click the special offer link below.
*Stock prices used were from the trading day of July. 24, 2026. The video was published on July. 24, 2026.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Should you buy stock in Microsoft right now?
Before you buy stock in Microsoft, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Microsoft wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $377,990!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,518!*
Now, it’s worth noting Stock Advisor’s total average return is 896% — a market-crushing outperformance compared to 206% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of July 27, 2026.
Neil Rozenbaum has positions in Meta Platforms, Nebius Group, Reddit, and SoFi Technologies. The Motley Fool has positions in and recommends Meta Platforms, Microsoft, and Reddit. The Motley Fool has a disclosure policy. Neil is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

4 Stocks Worth Loading Up on Before Earnings Hit

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Reddit Inc (Symbol: RDDT), where a total of 36,358 contracts have traded so far, representing approximately 3.6 million underlying shares. That amounts to about 86.3% of RDDT's average daily trading volume over the past month of 4.2 million shares. Especially high volume was seen for the $148 strike put option expiring July 24, 2026, with 3,098 contracts trading so far today, representing approximately 309,800 underlying shares of RDDT. Below is a chart showing RDDT's trailing twelve month trading history, with the $148 strike highlighted in orange:
Wolfspeed Inc (Symbol: WOLF) saw options trading volume of 33,086 contracts, representing approximately 3.3 million underlying shares or approximately 82.8% of WOLF's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $25 strike put option expiring September 18, 2026, with 12,685 contracts trading so far today, representing approximately 1.3 million underlying shares of WOLF. Below is a chart showing WOLF's trailing twelve month trading history, with the $25 strike highlighted in orange:
And Domo Inc (Symbol: DOMO) saw options trading volume of 14,697 contracts, representing approximately 1.5 million underlying shares or approximately 79.2% of DOMO's average daily trading volume over the past month, of 1.9 million shares. Particularly high volume was seen for the $3 strike call option expiring August 21, 2026, with 2,659 contracts trading so far today, representing approximately 265,900 underlying shares of DOMO. Below is a chart showing DOMO's trailing twelve month trading history, with the $3 strike highlighted in orange:
For the various different available expirations for RDDT options, WOLF options, or DOMO options, visit StockOptionsChannel.com.
Further RDDT Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: RDDT, WOLF, DOMO

The S&P 500 Index ($SPX) (SPY) on Wednesday closed down -0.14%, the Dow Jones Industrial Average ($DOWI) (DIA) closed down -0.01%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed down -0.54%. September E-mini S&P futures (ESU26) fell -0.07%, and September E-mini Nasdaq futures (NQU26) fell -0.48%.
Stock indexes fell on Wednesday as soaring crude prices pushed bond yields higher, weighing on stocks. WTI crude oil (CLU26) rose more than +2% on Wednesday to a 6-week high after the US and Iran played down the prospects of peace talks as disruptions to global oil supplies continued to mount. The 10-year T-note yield climbed to a 2-month high of 4.66% on Wednesday amid rising crude oil prices.
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The weakness in software and cybersecurity stocks on Wednesday also weighed on equities. The markets are waiting for earnings results after Wednesday’s close from Alphabet to see evidence that the company’s investments in artificial intelligence are generating returns, as it plans to more than double capital spending from 2025 to as much as $190 billion this year. On the positive side, most chipmakers strengthened, and energy producers and service providers moved higher with Wednesday’s rally in WTI crude oil to a 6-week high.
The US conducted an 11th straight day of attacks against Iran on Wednesday in an effort to degrade the country's ability to threaten commercial shipping in the Strait of Hormuz. Iran retaliated by striking US bases in Bahrain, Kuwait, and Jordan. President Trump said on Tuesday that the US has “no interest” in meeting with Iran until they are ready for serious peace negotiations.
Also, the Joint Maritime Information Center, a monitoring body for naval security, said on Wednesday that the Iran-backed Houthi rebels have deployed missiles and drones in preparation for attacks on shipping in the Red Sea. The Houthis have vowed to blockade shipping linked to Saudi Arabia and warned shipowners against calling at the nation's ports. The move threatens Saudi oil exports from Yanbu, a Red Sea hub that the Saudi's are using to ship crude since the war brought shipping through the Strait of Hormuz to a near halt. President Trump said Tuesday that if there is a blockade in the Red Sea, the US “will take care of it.”
US MBA mortgage applications rose +1.9% in the week ended July 17, with the purchase mortgage sub-index up +5.5% and the refinancing mortgage sub-index down -2.4%. The average 30-year fixed rate mortgage rose +4 bp to an 11-month high of 6.69% from 6.65% in the prior week.
The outlook for strong Q2 earnings, which begin in earnest this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive as 89% of the S&P 500 companies that reported Q2 earnings results have beaten estimates, according to data compiled by Bloomberg.
The markets are discounting a 34% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets settled mixed on Wednesday. The Euro Stoxx 50 climbed to a 2-week high and closed up +0.50%. China's Shanghai Composite closed up +0.07%. Japan's Nikkei-225 Stock Average closed down -0.18%.
Interest Rates
September 10-year T-notes (ZNU6) on Wednesday closed down -7 ticks, and the 10-year T-note yield rose +3.3 bp to 4.661%. Sep T-notes tumbled to a 17-month nearest-futures low on Wednesday, and the 10-year T-note yield rose to a 2-month high of 4.663%. T-notes retreated on Wednesday as WTI crude oil prices rose more than +2% to a 6-week high, which raised inflation expectations and is a hawkish factor for Fed policy. The 10-year breakeven inflation rate rose to a 1-week high of 2.290% on Wednesday. Also, tepid demand for the Treasury’s $13 billion auction of 20-year T-bonds weighed on T-note prices as the auction had a bid-to-cover ratio of 2.64, below the 10-auction average of 2.65.
European government bond yields moved higher on Wednesday. The 10-year German bund yield rose to a 2-month high of 3.192% and finished up +0.8 bp to 3.171%. The 10-year UK gilt yield climbed to a 2-month high of 5.065% and finished up +0.4 bp to 5.034%.
UK Jun CPI eased to +2.6% y/y from +3.8% y/y in May, weaker than expectations of +2.7% y/y and the slowest pace of increase in 15 months. However, Jun core CPI was unchanged from May at +2.6% y/y, stronger than the +2.5% y/y expected.
Swaps are discounting a 5% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
Software stocks are under pressure today, weighing on the broader market. ServiceNow (NOW) and Palantir Technologies (PLTR) closed down more than -6%, and Workday (WDAY) closed down more than -6% to lead losers in the Nasdaq 100. Also, Atlassian Corp (TEAM) closed down more than -5%, and Salesforce (CRM) closed down more than -4% to lead losers in the Dow Jones Industrials. In addition, Adobe Systems (ADBE), Datadog (DDOG), Autodesk (ADSK), and Thomson Reuters (TRI) closed down more than -3%, and Microsoft (MSFT) closed down more than -2%.
Cybersecurity stocks moved lower on Wednesday. Zscaler (ZS) closed down more than -4%, and Okta (OKTA) closed down more than -3%. Also, CrowdStrike Holdings (CRWD), Palo Alto Networks (PANW), Fortinet (FTNT), and Cloudflare (NET) closed down more than -1%.
Chipmakers and AI infrastructure stocks strengthened on Wednesday. Broadcom (AVGO) and NXP Semiconductors NV (NXPI) closed up more than +2%, and Nvidia (NVDA) closed up more than +2% to lead gainers in the Dow Jones Industrials. Also, Advanced Micro Devices (AMD), Seagate Technology Holdings Plc (STX), Analog Devices (ADI), Western Digital (WDC), Marvell Technology (MRVL), and Qualcomm (QCOM) closed up more than +1%.
Energy stocks and service providers moved higher on Wednesday as WTI crude oil rose more than +2% to a 6-week high. SLB Ltd (SLB) closed up more than +2%, and ConocoPhillips (COP), Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY), APA Corp (APA), and Chevron (CVX) closed up more than +1%.
Pegasystems (PEGA) closed down more than -16% after reporting Q1 adjusted EPS of 35 cents, weaker than the consensus of 44 cents.
GE Vernova (GEV) closed down more than -8% to lead losers in the S&P 500 after reporting Q2 adjusted Ebitda of $1.25 billion, below the consensus of $1.29 billion.
Reddit (RDDT) closed down more than -8% after the Wall Street Journal reported that the company has discussed cutting off Google’s access to its content for AI use.
TE Connectivity Plc (TEL) closed down more than -4% after announcing it entered into a definitive agreement to acquire Astrodyne TDI for about $1.4 billion.
Chubb Ltd (CB) closed down more than -3% after reporting Q2 net premiums written were $14.71 billion, below the consensus of $14.98 billion.
Northern Trust Corp (NTRS) closed down more than -3% after reporting Q2 non-interest expenses of $1.64 billion, higher than the consensus of $1.51 billion.
Super Micro Computer (SMCI) closed up more than +19% to lead gainers in the S&P 500 after saying its backlog rose to record levels at the end of 2026 with total new orders in excess of $60 billion received during Q4.
Westinghouse Air Brake Technologies (WAB) closed up more than +10% after reporting Q2 net sales of $3.18 billion, better than the consensus of $3.07 billion, and raising its full-year sales forecast to $12.30 billion to $12.60 billion from a previous estimate of $12.19 billion to $12.49 billion.
EQT Corp (EQT) closed up more than +8% after reporting Q2 adjusted Ebitda of $1.20 billion, better than the consensus of $1.11 billion.
CME Group (CME) closed up +5% after reporting Q2 adjusted EPS of $2.99, stronger than the consensus of $2.90.
DigitalOcean Holdings (DOCN) closed up more than +4% after Stifel upgraded the stock to buy from hold with a price target of $160.
CoreWeave (CRWV) closed up more than +3% after Truist Securities upgraded the stock to buy from hold with a price target of $126.
AT&T (T) closed up more than +3% after reporting Q2 wireless postpaid phone net additions of +432,000, well above the consensus of +325,264.
Earnings Reports(7/23/2026)
Albertsons Cos Inc (ACI), Allegion plc (ALLE), American Airlines Group Inc (AAL), Ameriprise Financial Inc (AMP), Appfolio Inc (APPF), Blackstone Inc (BX), Boyd Gaming Corp (BYD), Cleveland-Cliffs Inc (CLF), Columbia Banking System Inc (COLB), Comcast Corp (CMCSA), Comfort Systems USA Inc (FIX), Deckers Outdoor Corp (DECK), Digital Realty Trust Inc (DLR), Dover Corp (DOV), Dow Inc (DOW), Edwards Lifesciences Corp (EW), First Citizens BancShares Inc/ (FCNCA), Freeport-McMoRan Inc (FCX), Honeywell International Inc (HON), Huntington Bancshares Inc/OH (HBAN), Intel Corp (INTC), Kinsale Capital Group Inc (KNSL), Lazard Inc (LAZ), Lockheed Martin Corp (LMT), Nasdaq Inc (NDAQ), Newmont Corp (NEM), Norfolk Southern Corp (NSC), NVR Inc (NVR), Old Republic International Cor (ORI), Ovintiv Inc (OVV), PG&E Corp (PCG), Pool Corp (POOL), Popular Inc (BPOP), Quest Diagnostics Inc (DGX), Rexford Industrial Realty Inc (REXR), RingCentral Inc (RNG), Robert Half Inc (RHI), Roper Technologies Inc (ROP), RTX Corp (RTX), Ryder System Inc (R), SLM Corp (SLM), Snap-on Inc (SNA), SOUTHSTATE BANK CORP (SSB), SS&C Technologies Holdings Inc (SSNC), Summit Therapeutics Inc (SMMT), Thermo Fisher Scientific Inc (TMO), T-Mobile US Inc (TMUS), Tractor Supply Co (TSCO), Union Pacific Corp (UNP), VeriSign Inc (VRSN), Viking Therapeutics Inc (VKTX), West Pharmaceutical Services Inc (WST).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stocks Settle Lower as Crude Oil Prices Jump

Key Points
Reddit is achieving higher year-over-year growth rates for its user base, revenue, and net income.
Meta Platforms is developing more ways to generate revenue beyond advertising, which can provide greater resilience if online advertising growth slows down.
Investors have to assess how long it will take for Meta Platforms to tap into growth initiatives and what Reddit's deceleration in ad revenue will look like.
Meta Platforms (NASDAQ: META) and Reddit (NYSE: RDDT) are two of the most well-known social media companies. Meta Platforms has dominated the industry with Facebook, Instagram, and WhatsApp, while Reddit has carved out a unique niche for itself.
Both stocks had rough starts to 2026, and while Meta has mostly recovered, Reddit is still down by more than 20% year to date. However, with both companies scheduled to report earnings before the end of the month, now would be a good time to assess them both and determine which is the better buy.
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Reddit is growing much faster
Reddit has the edge in growth rates. Its compound annual revenue growth rate of 48.9% over the past three years comfortably outpaced Meta Platforms' 19.9% rate over the same stretch.
Reddit's more rapid growth should continue for a while, since it has the advantage of being a far smaller platform. The only issue with operating a set of platforms that reach a cumulative 3.56 billion daily active users (DAUs) is that there aren't as many people left who can become new users of its family of apps.
Reddit is different. It has an impressive 126.8 million DAUs, but it could double its current user base and still have less than 10% of Meta Platforms' DAUs. Smaller companies have more untapped market share, which can produce higher long-term returns for patient investors.
The fact that Reddit saw a 17% year-over-year increase in daily active users compared to Meta's 4% growth rate highlights how much more market share is available to Reddit. Meta Platforms has done a more complete job of saturating its market.
Higher user growth rates have helped Reddit outpace Meta's revenue growth in recent years. Net income has followed the same pattern.
Meta Platforms has more ways to generate revenue
While the current fundamentals favor Reddit, there are a few potential catalysts on Meta's side. Facebook's parent company has the better valuation: Its price-to-earnings (P/E) ratio of 23.5 is superior to Reddit's 51.8 P/E. Reddit's growth rates are better, but a bird in the hand is worth two in the bush.
Furthermore, Meta Platforms has more ways to generate revenue. Its large language model (LLM) and AI glasses offer compelling long-term opportunities, as does the cloud infrastructure segment that it's expected to launch.
Granted, these three initiatives will only account for a small fraction of its total revenue: Meta Platforms is still primarily an online advertising company. However, the steps Meta is taking now could set the stage for growth in other areas, which would provide vital diversification in the event that advertising sales slow down. Reddit doesn't have other meaningful sources of income; data licensing and Reddit Premium subscriptions make up only a small portion of its total revenue.
How much longer can ad revenue remain elevated?
Every high-growth company eventually sees its top-line growth rates decelerate. For instance, Meta Platforms delivered 54% year-over-year revenue growth back in 2016.
Reddit's revenue growth will follow a similar regression over time. As more people either sign up for Reddit or consider it and opt not to create an account, it will become more difficult for the company to achieve high year-over-year growth rates.
Meta has a more attractive valuation, but investors can attribute Reddit's premium to the fact that it's gaining market share more rapidly. Meta Platforms is, relatively speaking, an older and more mature collection of social media platforms. Reddit has more room to run, though the main question with this comparison is how much runway remains for it.
If Reddit can maintain elevated revenue growth rates for multiple years, it will look like the better pick. However, if revenue growth rates decelerate sharply, it will face more pressure on its valuation.
Reddit is guiding for $720 million in second-quarter revenue at the midpoint, which would be a 44% year-over-year improvement. That would be good, but it would also be a meaningful deceleration from its 69% growth rate in Q1. For Reddit to justify a decision to buy it over Meta, it will have to exceed guidance in Q2. If it doesn't deliver that degree of outperformance, I'd say Meta Platforms stock looks more attractive at current levels.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Meta Platforms vs. Reddit: Which Social Media Stock Is the Better Buy

The S&P 500 Index ($SPX) (SPY) today is down -0.09%, the Dow Jones Industrial Average ($DOWI) (DIA) is up +0.10%, and the Nasdaq 100 Index ($IUXX) (QQQ) is down -0.29%. September E-mini S&P futures (ESU26) are down -0.07%, and September E-mini Nasdaq futures (NQU26) are down -0.22%.
Stock indexes are under modest today amid weakness in software and cybersecurity stocks. The markets are waiting for earnings results after the close today from Alphabet to see evidence that the company’s investments in artificial intelligence are generating returns, as it plans to more than double capital spending from 2025 to as much as $190 billion this year. On the positive side, energy producers and service providers are moving higher with today’s rally in WTI crude oil to a 6-week high.
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Soaring WTI crude oil (CLU26) prices are also pushing bond yields higher and are weighing on stocks. Crude oil is up more than +2% today to a 6-week high after the US and Iran played down the prospects of peace talks as disruptions to global oil supplies continued to mount. The 10-year T-note yield climbed to a 2-month high of 4.66% today amid rising crude oil prices.
The US conducted an 11th straight day of attacks on Iran today in an effort to degrade the country's ability to threaten commercial shipping in the Strait of Hormuz. Iran retaliated by striking US bases in Bahrain, Kuwait, and Jordan. President Trump said on Tuesday that the US has “no interest” in meeting with Iran until they are ready for serious peace negotiations.
Also, the Joint Maritime Information Center, a monitoring body for naval security, said the Iran-backed Houthi rebels have deployed missiles and drones in preparation for attacks on shipping in the Red Sea. The Houthis have vowed to blockade shipping linked to Saudi Arabia and warned shipowners against calling at the nation's ports. The move threatens Saudi oil exports from Yanbu, a Red Sea hub that the Saudi's are using to ship crude since the war brought shipping through the Strait of Hormuz to a near halt. President Trump said Tuesday that if there is a blockade in the Red Sea, the US “will take care of it.”
US MBA mortgage applications rose +1.9% in the week ended July 17, with the purchase mortgage sub-index up +5.5% and the refinancing mortgage sub-index down -2.4%. The average 30-year fixed rate mortgage rose +4 bp to an 11-month high of 6.69% from 6.65% in the prior week.
The outlook for strong Q2 earnings, which begin in earnest this week, is a bullish factor for stocks. Forecasts compiled by Bloomberg Intelligence suggest Q2 earnings may increase by +23%, close to Q1’s blowout earnings of +30%, which was more than double the +12% analysts had expected. AI spending is expected to account for most of earnings, with AI infrastructure stocks set to contribute nearly 60% of the S&P 500's earnings-per-share growth in Q2. So far, earnings results have been positive as 91% of the S&P 500 companies that reported Q2 earnings results have beaten estimates, according to data compiled by Bloomberg.
The markets are discounting a 34% chance of a +25 bp rate hike at the next FOMC meeting on July 28-29.
Overseas stock markets are mixed today. The Euro Stoxx 50 climbed to a 2-week high and is up +0.55%. China's Shanghai Composite closed up +0.07%. Japan's Nikkei-225 Stock Average closed down -0.18%.
Interest Rates
September 10-year T-notes (ZNU6) today are down -7 ticks, and the 10-year T-note yield is up +2.6 bp at 4.655%. Sep T-notes tumbled to a 17-month nearest-futures low today, and the 10-year T-note yield rose to a 2-month high of 4.659%. T-notes are sliding today, with WTI crude oil prices up more than +2% to a 6-week high, which raises inflation expectations and is a hawkish factor for Fed policy. The 10-year breakeven inflation rate rose to a 1-week high of 2.288% today. Also, supply pressures are weighing on T-notes as the Treasury will auction $13 billion of 20-year T-bonds later today.
European government bond yields are moving higher today. The 10-year German bund yield rose to a 2-month high of 3.192% and is up +2.1 bp to 3.184%. The 10-year UK gilt yield climbed to a 2-month high of 5.065% and is up +2.4 bp to 5.054%.
UK Jun CPI eased to +2.6% y/y from +3.8% y/y in May, weaker than expectations of +2.7% y/y and the slowest pace of increase in 15 months. However, Jun core CPI was unchanged from May at +2.6% y/y, stronger than the +2.5% y/y expected.
Swaps are discounting a 5% chance of a +25 bp ECB rate hike at its next policy meeting on Thursday.
US Stock Movers
Software stocks are under pressure today, weighing on the broader market. Atlassian Corp (TEAM) is down more than -5%, and Workday (WDAY) is down more than -5% to lead losers in the Nasdaq 100. Also, ServiceNow (NOW) and Palantir Technologies (PLTR) are down more than -4%, and Salesforce (CRM) is down more than -3% to lead losers in the Dow Jones Industrials. In addition, Datadog (DDOG) and Autodesk (ADSK) are down more than -3%, and Microsoft (MSFT) and Adobe Systems (ADBE) are down more than -2%.
Cybersecurity stocks are sliding today. Zscaler (ZS) is down more than -3%, and CrowdStrike Holdings (CRWD), Palo Alto Networks (PANW), Okta (OKTA), and Fortinet (FTNT) are down more than -2%. Also, Cloudflare (NET) is down more than -1%.
Energy stocks and service providers are climbing today, with WTI crude oil up more than +2% to a 6-week high. Devon Energy (DVN), Diamondback Energy (FANG), Occidental Petroleum (OXY),
and SLB Ltd (SLB) are up more than +2%. Also, APA Corp (APA), Baker Hughes (BKR), Chevron (CVX), and ConocoPhillips (COP) are up more than +1%.
Pegasystems (PEGA) is down more than -13% after reporting Q1 adjusted EPS of 35 cents, weaker than the consensus of 44 cents.
Reddit (RDDT) is down more than -9% after the Wall Street Journal reported that the company has discussed cutting off Google’s access to its content for AI use.
GE Vernova (GEV) is down more than -6% to lead losers in the S&P 500 after reporting Q2 adjusted Ebitda of $1.25 billion, below the consensus of $1.29 billion.
TE Connectivity Plc (TEL) is down more than -6% after announcing it entered into a definitive agreement to acquire Astrodyne TDI for about $1.4 billion.
Chubb Ltd (CB) is down more than -3% after reporting Q2 net premiums written were $14.71 billion, below the consensus of $14.98 billion.
Northern Trust Corp (NTRS) is down more than -3% after reporting Q2 non-interest expenses of $1.64 billion, higher than the consensus of $1.51 billion.
Cal-Maine Foods (CALM) is down more than -2% after reporting Q4 net sales of $552.6 million, weaker than the consensus of $594.5 million.
Super Micro Computer (SMCI) is up more than +24% to lead gainers in the S&P 500 after saying its backlog rose to record levels at the end of 2026 with total new orders in excess of $60 billion received during Q4.
Westinghouse Air Brake Technologies (WAB) is up more than +10% after reporting Q2 net sales of $3.18 billion, better than the consensus of $3.07 billion, and raising its full-year sales forecast to $12.30 billion to $12.60 billion from a previous estimate of $12.19 billion to $12.49 billion.
CoreWeave (CRWV) is up more than +5% to lead gainers in the Nasdaq 10 after Truist Securities upgraded the stock to buy from hold with a price target of $126.
AT&T (T) is up more than +3% after reporting Q2 wireless postpaid phone net additions of +432,000, well above the consensus of +325,264.
DigitalOcean Holdings (DOCN) is up more than +3% after Stifel upgraded the stock to buy from hold with a price target of $160.
Oklo (OKLO) is up more than +2%, and X-Energy (XE) is up more than +1% after Bloomberg News reported that the companies will join the US program to speed up development of new power plants for artificial intelligence data centers.
Teledyne (TDY) is up more than +2% after reporting Q2 adjusted EPS of $6.28, well above the consensus of $5.79, and raising its full-year adjusted EPS estimate to $24.45 to $24.65 from a previous estimate of $23.85 to $24.15, above the consensus of $24.18.
Earnings Reports(7/22/2026)
Alphabet Inc (GOOGL), AT&T Inc (T), AvalonBay Communities Inc (AVB), CME Group Inc (CME), Crown Castle Inc (CCI), CSX Corp (CSX), EastGroup Properties Inc (EGP), Equity LifeStyle Properties Inc (ELS), Equity Residential (EQR), First American Financial Corp (FAF), First Industrial Realty Trust (FR), GE Vernova Inc (GEV), Globe Life Inc (GL), Graco Inc (GGG), International Business Machine (IBM), Iridium Communications Inc (IRDM), Kinder Morgan Inc (KMI), Knight-Swift Transportation Ho (KNX), Las Vegas Sands Corp (LVS), Medpace Holdings Inc (MEDP), Molina Healthcare Inc (MOH), Moody's Corp (MCO), Northern Trust Corp (NTRS), Otis Worldwide Corp (OTIS), Packaging Corp of America (PKG), Philip Morris International Inc (PM), Pinnacle Financial Partners In (PNFP), PulteGroup Inc (PHM), QuantumScape Corp (QS), Raymond James Financial Inc (RJF), Reliance Inc (RS), RenaissanceRe Holdings Ltd (RNR), RLI Corp (RLI), Rollins Inc (ROL), RPM International Inc (RPM), SEI Investments Co (SEIC), ServiceNow Inc (NOW), Sonoco Products Co (SON), Southwest Airlines Co (LUV), Stifel Financial Corp (SF), TE Connectivity PLC (TEL), Teledyne Technologies Inc (TDY), Tesla Inc (TSLA), Texas Instruments Inc (TXN), Travel + Leisure Co (TNL), Westinghouse Air Brake Technol (WAB), WEX Inc (WEX), Wyndham Hotels & Resorts Inc (WH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reddit, Inc.

Price history and volume

360 Overview

Investment risk — high

Investment potential — medium

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