Reddit Sinks 5% as Slower Growth Guidance Looms Over Earnings; Snap Drops 3%, Meta Holds Steady

Reddit Inc (RDDT) stock fell 6% to $135.67 amid pre-earnings caution ahead of Q3 results on October 29. Concerns stem from management's guidance for slower revenue growth, despite bullish analyst targets (Truist: $275, Evercore: $265). The stock trades below key moving averages, with broader market weakness in the Communication Services sector.

Meta Platforms (META) plans to raise up to $95B in equity financing, easing funding concerns. Analysts debate AI investment returns, with Wells Fargo (Overweight, $995 target) and RBC (Outperform, $800 target) noting mixed impacts. Yorkville (Outperform, $920 target) highlights growth potential but notes negative free cash flow in Q3 2026.

Meta plans to raise up to $95 billion from selling common and preferred stock to fund AI investments. The company will introduce a new non-voting share class in January. This follows a similar move by Google and Intel earlier this year.

Meta Platforms announced a $95B financing plan to fund AI and infrastructure investments, including $35B in public offerings and a $60B at-the-market program. Nvidia, AMD, and Broadcom expressed interest in purchasing up to $5B of Class A stock. Meta reported Q3 2026 revenue of $64.6B and net income of $9.9B, with plans to nearly double infrastructure capacity this year.

Canaccord reiterated a Buy rating and $950 price target for Meta (META) after its $35B equity offering. Meta's stock is down 9% this week. The offering includes $22.5B in Class A stock and $12.5B in convertible preferred stock, part of a broader $60B financing plan. Meta's revenue grew 27.5% over the last year, with a 21.91 P/E ratio and 0.74 PEG ratio. Analysts see the dilution as manageable and maintain positive outlooks.

Meta Platforms (META) announced a $95 billion funding plan, including $35 billion in stock offerings and a $60 billion share-sale program. Shares fell 1.8% to $631.27. The company reported negative free cash flow of $2.12 billion despite $64.60 billion in revenue. Proceeds will fund AI and computing capacity expansion, but valuation risks and execution challenges remain.