REDDIT (#REDDIT) weekly special report based on 1.00 Lot Calculation:
SOCIAL NETWORKING
- SOCIAL MEDIA MARKET SHARE: Facebook continues to lead with around 64% of the market, followed by Instagram and Pinterest, taking up a little over 9% each. YouTube takes up around 7.5%, while Reddit takes up around 0.55%. This is according to Statacounter.com.
- COMPANY: Reddit is the 19th most visited website on the internet and 6th most popular social media provider. Reddit allows anonymous posts, supporting honesty and transparency. Interestingly, posts can be voted by the community and the posts with the highest votes generate greater authority.
- FOUNDED: 2005
- ACTIVE USERS: Reddit had around 70 million daily users in 2023 and 850 million monthly users. They have around 270 million weekly active users.
- MONEY- GENERATION: Reddit makes money through advertising on the site. In recent quarters, it would make a quarterly ad revenue of around $200 million on average. The company also offers premium packages of around $5.99 a month.
REDDIT: FINANCIALS
- Q1 EARNINGS REPORT. Reddit reported higher than expected revenue for Q1 of 2024 ($243 million vs. 211.9 million expected). The company reported a loss per share for the same period, but still lower than expected (-$8.19 vs. -$8.71 expected). Average revenue per user was $2.94, exceeding analysts’ expectations for $2.75. Daily active users jumped to 82.7 million, higher than expectations for 77.35 million.
- Q2 EARNINGS FORECATS: According to Reuters, Reddit said it could post an adjusted profit in the second quarter thanks to its booming advertising business and content-licensing deals with AI (Artificial Intelligence) companies. Reddit said it expects second-quarter revenue to be between $240 million and $255 million, compared with an estimate of $223.8 million.
- REVENUE IN FISCAL 2023: $810 million. This is still up from 2022’s $670 million.
- CASH: $1.2 BILLION.
REDDIT: ARTIFICIAL INTELLIGENCE
- REDDIT CUTS A DEAL WITH GOOGLE: According to the Verge, Google is getting AI training data from Reddit as part of a new partnership between the two companies. A deal reportedly worth $60 million per year will give Google real-time access to Reddit’s data and use Google AI for Reddit’s search.
REDDIT: INITIAL PUBLIC OFFERING (IPO) (MARCH 21). The company went public for the first time in its history on March 21, 2024.
REDDIT: PRICE ACTION
- IPO PRICE (March 21): $34 a share
- ALL-TIME HIGH (March 26): $74.42 a share
- CURRENT PRICE (May 14): $58 a share
- IPO CAPITAL RAISED: $748 million.
- MARKET CAPITALIZATION: ~$7 billion.
- STOCK EXCHANGE: New York Stock Exchange (NYSE)
IPOs OF SOME OTHER BIG TECH COMPANIES:
Data Source I: Bloomberg
Data Source II: MetaTrader 4 Platform
*- Current Prices From Market Close On May 13, 2024
Please note that the past performance of different instruments does not guarantee future results of Reddit.
REDDIT, May 14, 2024
Current Price: 58
|
|
Weekly |
|
Trend direction |
|
|
100 |
|
|
85 |
|
|
70 |
|
|
47 |
|
|
45 |
|
|
43 |
Example of calculation base on weekly trend direction for 1.00 Lot1
|
Pivot Points |
||||||
|
Profit or loss in $ |
42,000 |
27,000 |
12,000 |
-11,000 |
-13,000 |
-15,000 |
|
Profit or loss in €2 |
38,965 |
25,049 |
11,133 |
-10,205 |
-12,061 |
-13,916 |
|
Profit or loss in £2 |
33,536 |
21,559 |
9,582 |
-8,783 |
-10,380 |
-11,977 |
|
Profit or loss in C$2 |
57,452 |
36,933 |
16,415 |
-15,047 |
-17,783 |
-20,519 |
1. 1.00 lot is equivalent of 1000 units
2. Calculations for exchange rate used as of 09:16 (GMT+1) 14/05/2024
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Senior Account ManagerClient Manager regarding their use.
- You may wish to consider closing your position in profit, even if it is lower than suggested one.
- Trailing stop technique can protect the profit – Ask your Senior Account ManagerClient Manager for more details.