Why Reddit stock closed at a record high on Monday
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Reddit (RDDT) shares hit a record high on Monday after Morgan Stanley analysts upgraded the social media stock, citing “multiple levers” for the company's growth potential into 2025. The transaction was completed.
Analysts called the growth in the company's stock since its initial public offering earlier this year “an onlooker's mistake.” They raised their price target from $70 to $200, upgraded the stock from “equal weight” to “overweight,” and announced new tools and products that could help grow Reddit's user base and ad revenue next year. emphasized.
“In effect, RDDT is rapidly shipping engagement and advertising products and has multiple levers to drive exceptional growth,” analysts wrote on Sunday.
Reddit's daily active users (DAU) are growing about 20% faster than Morgan Stanley's model had predicted, and analysts believe that Reddit's user base is growing with the amount of time users spend on the platform. He said he expected it to continue. They pointed to features like improved search and Alphabet's (GOOGL) partnership with Google to drive more users to Reddit links as tools to attract new users.
A growing user base that spends more time on the platform could make Reddit more attractive to advertisers, potentially pushing Reddit's ad pricing closer to competitors like Google and META. Yes, the analysts wrote.
Reddit shares rose nearly 3% to close above $167 on Monday. The stock has risen more than 230% since going public in March.
-Aaron McDade
Comcast stock falls as executives warn of broadband subscriber losses
1 hour 49 minutes ago
Comcast (CMCSA) stock fell about 9% during the day Monday after a conglomerate executive warned that the company is expected to lose 100,000 broadband subscribers this quarter.
Comcast Cable CEO Dave Watson said at the UBS Global Media & Communications Conference in New York that the company has an estimated average revenue per user (ARPU) of 3% to 4%. “We'll probably stay at the lower end of that range,” he said. range,” according to records provided by AlphaSense.
Watson explained that about 10,000 of the subscriber losses could be attributed to the effects of hurricanes Helen and Milton. He added that the decline in ARPU was caused by low-end activity related to the timing of the affordable connectivity program, as well as rebates given due to the storm.
Watson noted that Comcast faces a “highly competitive” environment. He said that was especially true at the “more price-sensitive end of the market.” Watson noted that competitive intensity has been fairly consistent throughout the year and continued into the fourth quarter.
Comcast stock had been roughly flat since the beginning of the year until Monday's drop.
-Bill McCall
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Hershey stock soars on news of acquisition
2 hours 37 minutes ago
Hershey's (HSY) stock rose Monday on news that snack food giant Mondelez International (MDLZ) is considering acquiring the U.S.-based chocolate company.
Mondelez is considering an acquisition, but the process is in the preliminary stages and the deal may not materialize. bloomberg Reported. The article does not provide financial details about the potential offer to Hershey. Hershey's market value is more than $35 billion, according to data from Visible Alpha.
Mr. Hershey rejected another offer in 2016 from Mondelez, which makes sweets such as Cadbury chocolate and Oreo cookies, as well as savory snacks such as Wheat Thins and Ritz crackers.
Mondelez spokeswoman Tracy Noe said the company does not comment on “market rumors or speculation.” Hershey did not immediately respond to a request for comment.
Hershey stock rose about 13% Monday afternoon, putting it in positive territory since the beginning of the year. Mondelez shares fell about 2%.
-Sarina Trangle
China ETFs and stocks rise on Beijing's promise of 'more aggressive' economic stimulus
3 hours 30 minutes ago
China-focused exchange-traded funds (ETFs) and stocks of Chinese companies listed on US exchanges rose after the country's top leaders announced plans for “more aggressive” stimulus spending. It soared on Monday. next year.
Announcement of priorities for next year cited by national government Xinhua News Agency The news comes as U.S. President-elect Donald Trump threatens to increase tariffs on Chinese imports, following Beijing's September stimulus package aimed at boosting the country's sluggish economy.
The previous stimulus package, including subsequent measures, fell short of investors' expectations.
Xinhua News Agency reported on Monday that the Communist Party's Politburo endorsed “implementing more aggressive fiscal policy and moderate monetary easing policy next year” at its latest monthly meeting.
According to bloombergMonday's announcement marked the “boldest” expression by the Chinese government on stimulus in years. The paper noted that the last time China adopted a “moderately accommodative” monetary policy was during the global financial crisis in 2008, when the leadership launched a series of economic stimulus measures.
The iShares MSCI China ETF (MCHI) was up more than 8% on Monday morning. The Nasdaq Golden Dragon China Index (HXC), an index of 64 China-based companies traded in the United States, rose more than 9%.
-Nisha Gopalan
Macy's stock rises as activist investors seek real estate sector
4 hours 27 minutes ago
Macy's (M) stock rose on Monday after an activist investor announced proposals to turn around the retailer, including creating a real estate subsidiary and curbing capital spending.
Activist investment firm Barrington Capital Group and real estate investment firm So Equities are behind the proposal, showing support for CEO Tony Spring's plan to close many of the worst-performing Macy's stores. expressed. They called on the company to create a real estate division to drive real estate sales and redevelopment, and to charge rent for Macy's stores.
“Macy's owns valuable, well-located real estate assets, including its flagship property in New York City's Herald Square, which we believe is valued in the range of $5 billion to $9 billion.” Toll Chairman Joseph Sitt said.
Activists are also calling for capital spending to be cut to 1.5-2% of sales from the current around 4%. The plan is to buy back “a minimum of $2 billion to $3 billion of stock over the next three years.” And there's also the possibility of spinning off high-growth luxury brands Macy's Bloomingdale's and Bluemercury. The group is also seeking a seat on Macy's board of directors, arguing its plans could increase revenue by 150% to 200% over the next three years.
“We remain confident in our bold new chapter strategy, which continues to gain momentum across all three pillars, and look forward to reporting our full third quarter results,” Macy's board of directors said in a statement. We will share further details on our progress as we proceed.” on monday.
Macy's stock was up about 2% Monday afternoon, but the stock has fallen about 17% since the beginning of the year.
-Sarina Trangle
Interpublic Group stock rises as Omnicom reaches agreement to acquire advertising rival
5 hours 30 minutes ago
Interpublic Group of Companies (IPG) shares soared on Monday after Omnicom Group (OMC) announced a deal to acquire its rival in an all-stock deal that would create the world's largest advertising company.
The stock exchange transaction is expected to close in the second half of 2025, with the combined company retaining the Omnicom name and trading under the OMC ticker symbol. The transaction also requires approval from Omnicom and Interpublic shareholders and regulatory approvals.
Citi said in a Monday report before announcing the deal that the combined company would control 48% of the U.S. market, and investors may expect the deal to face regulatory hurdles. He said there is a lot of competition from small agencies, high-tech companies and consulting firms. There are also on the market.
“Although regulatory questions will certainly be raised, we believe this transaction is likely to be approved (if attempted),” Citi analysts wrote, adding, “A large agency holding company Mergers between the two are rare.”
Interpublic stock, which had lost about 10% of its value this year as of Friday's close, closed Friday's trading at $29.26, giving the company a market value of nearly $11 billion. The deal values Interpublic at $13.25 billion, an Omnicom spokesperson said.
Interpublic stock rose 8% in intraday trading Monday, while Omnicom stock fell about 8%.
-Nisha Gopalan
Super microcomputer stocks soar after NASDAQ filing deadline extension – pay attention to these price levels
6 hours 38 minutes ago
Super Microcomputer (SMCI) shares rose in early trading on Monday after the troubled server maker announced late Friday that the Nasdaq had extended its annual report filing delay until February. The price rose.
Supermicro announced Friday that it plans to file its annual report by the Feb. 25 deadline, along with its delayed September quarterly report, to meet Nasdaq exchange listing requirements.
The company's stock fell about 65% from late October to mid-November, but it has recovered most of its losses over the past month and is now trading more than 50% higher this year as of Friday's close.
Since hitting bottom last month, supermicro stocks have made a remarkable recovery, with prices more than doubling from their mid-November lows.
Importantly, the above-average volume supports a bullish reversal and indicates buying activity by large market players.
More recently, last week, the stock consolidated within a pennant, a chart pattern that indicates a continuation of the stock's recent impulsive rally.
Read here to learn about three important overhead areas on Supermicro's chart that are worth noting, as well as key support levels that could garner buying interest during stock price declines.
-Timothy Smith
NVIDIA stock falls as Chinese regulators announce antitrust investigation
7 hours 38 minutes ago
Nvidia (NVDA) stock fell on Monday morning after China's State Administration for Market Regulation (SAMR) announced it was investigating the semiconductor manufacturing giant for possible violations of China's antitrust laws.
Antitrust regulators announced Monday that they are investigating Nvidia over the chipmaker's 2020 acquisition of Israeli-American networking hardware maker Mellanox Technologies. “We are opening an investigation against NVIDIA in accordance with the law,” SAMR said, according to a translation of the statement. CNBC.
The $6.9 billion deal was announced in March 2019 and completed in April 2020, just days after the same Chinese regulator signed the deal along with European, Mexican, and U.S. regulators.
Approval of the deal was conditional from Chinese regulators. According to the report, Nvidia does not discriminate against Chinese companies, and Mellanox notified competitors of the new product within 90 days of providing it to Nvidia. Bloomberg.
The company's stock price fell more than 2% in early trading Monday, but is still up more than 180% since the beginning of the year.
-Aaron McDade
Futures prices have been mixed since last week ahead of the Fed's decision.
8 hours 16 minutes ago
Futures contracts tied to the Dow Jones Industrial Average rose about 0.1% in premarket trading Monday.
S&P 500 futures were little changed after recovering from earlier losses.
Nasdaq 100 futures fell 0.1%.
