Reddit experienced a 19% decline over the past week, amid notable developments including its expansion with Integral Ad Science and integration with Samdesk's Data API. Despite being added to the NASDAQ Internet Index, broader market turmoil heavily influenced the company's share price drop. The overall market faced significant pressure with the Dow plunging 2,200 points and the Nasdaq entering bear market territory due to trade tensions. This external market volatility overshadowed Reddit's advancements and likely contributed more significantly to its share price decrease last week.

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Over the past year, Reddit's shares have achieved a total return, including dividends, of 82.74%, indicating a robust longer-term performance. This far surpasses the US Interactive Media and Services industry return of 5.1% and the broader US market return of 3.4% during the same period. Such a substantial return highlights the company's significant investor appeal despite underperformance over the past week due to broader market challenges.

The announcement of partnerships, such as those with Integral Ad Science and Samdesk, may bolster Reddit's revenue forecasts, potentially driving growth. However, despite impressive sales of US$1.30 billion, Reddit remains unprofitable with a net loss of US$484.28 million. Analysts predict high revenue growth of 21.9% annually, and a potential turnaround in profitability within three years. However, the stock currently trades at a significant discount to its consensus price target of US$186.14, suggesting that analysts see considerable upside potential.

Review our growth performance report to gain insights into Reddit's future.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NYSE:RDDT.

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