Yesterday I made a detailed post on [META](https://www.reddit.com/r/wallstreetbets/comments/1kbnosv/everything_about_metas_earnings_tonight/)'s earnings and it launched up +5% today. I really hope you guys read my DD, today I'd like to touch up on RDDT as they're doing their earnings results today.
Reddit beat analysts’ revenue expectations by 4.6% last quarter, reporting revenues of $427.7 million, up 71.3% year on year. It was a satisfactory quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 48 million daily active users, up 31.9% year on year. It's important to note that reddit has only had 3 earnings so far. And the stock has launched up over 10% each time, on all three.
This quarter, it looks like analysts are expecting Reddit’s revenue to grow 52.1% year on year to $369.5 million, improving from the 48.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.51 per share.
[Chart](https://i.imgur.com/5fhtzMp.png)
From what I've read, analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Reddit has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 10.1% on average.
Looking at Reddit’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Snap delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 1.3%, and Booking reported revenues up 7.9%, topping estimates by 3.6%. These are all impressive results.
I honestly think investing in the consumer internet segment has been generally a good idea, with share prices up 1.7% on average over the last month. However, reddit is up 7% during the same time and is heading into earnings with an average analyst price target of $145.59 (compared to the current share price of $117.70).
So what do we do for earnings? Calls might get IV crushed so I'm deciding on a call spread. Buying the 5/2 135c and selling the 145c. My [position](https://i.imgur.com/YirHoQK.png).
