Reddit (RDDT) Gains 40%+, Plus the Latest Strong Buy Ratings

But I reddit on the internet … We've got the scoop on RDDT, GOOGL, & more big movers below — plus, 3 Strong Buy recommendations from top-rated analysts.

🔥 HOT: Reddit (NYSE: RDDT) shocked Wall Street on Wednesday by gaining 42.0% after an unexpectedly positive third-quarter earnings report. The company’s third-quarter EPS exceeded analysts’ expectations by more than 300%, and its revenue was almost $35 million greater than consensus estimates. Analysts across Wall Street rushed to increase their price targets for RDDT after the company passed earnings milestones that many people thought would take years to reach.

🥶 NOT: Super Micro Computer’s (NASDAQ: SMCI) accounting firm, Ernst & Young, resigned on Wednesday after stating that the company is “unwilling to be associated” with Super Micro’s financial reporting. Shares of Super Micro plummeted following the news, losing 32.7% by the closing bell. After a meteoric start to the year that saw SMCI gain 320% by early March, concerns about the company's reporting and transparency caused the stock to lose 72.7% since then. SMCI is now up just 18.1% YTD.

🔥 HOT: Alphabet (NASDAQ: GOOGL) shares rose by 2.8% on Wednesday after a surprise upbeat earnings call. Google’s parent company beat both its top and bottom line estimates, exceeding its revenue projections by $1.8 billion. GOOGL has been up and down this year, but Wednesday’s earnings boost leaves it up 27.4% YTD and poised to finish the year strong.

🥶 NOT: Shares of The Kraft Heinz Company (NASDAQ: KHC) fell by 3.0% on Wednesday after the company’s third-quarter report showed that its recent price increases have not been able to overcome its continually declining sales. The company said that it plans to invest in more marketing and research to improve its future sales growth but simultaneously lowered its full-year outlook to be closer to the low end of its previous range of $3.01 to $3.07. 

📈 Want more? Check out the biggest winners and biggest losers on WSZ. 

Strong Buys: Top Picks from Top Wall Street Analysts 

Don’t rely on stock recommendations from just anyone. With WallStreetZen, you gain access to high-conviction stock ratings from top-rated analysts every weekday. It’s a premium feature on our site, but we’ve unlocked a FREE sampling below: 

Amazon.com, Inc. (NASDAQ: AMZN)

⭐ Earnings expected after market close today 

Analyst/Firm: Stephen Ju / UBS

Analyst ranking: Top 3% / average return +7.49% / win rate 50% 

Yesterday’s market close: $192.73

Price target: $223.00

• Maintaining a Strong Buy rating, UBS's Stephen Ju raised their price target on Amazon (NASDAQ: AMZN) by 1.4% from $220 to $223 on 10/28, in advance of the company’s earnings report, scheduled for release after market close today.  
• According to the analyst, the stock's current valuation already reflects the likelihood of short-term margin pressures caused by content, Project Kuiper, and other investments. 
• Footnote: Yahoo Finance reports that the current consensus EPS estimate for the company's Q3 is $1.14 which, if achieved, would represent a 32.6% increase over Q3 2023's $0.86.
• See 37 analyst ratings and price targets on AMZN here.

1-year chart for AMZN, courtesy TradingView

Nutanix Inc. (NASDAQ: NTNX)

Analyst/Firm: Meta Marshall / Morgan Stanley

Analyst ranking: Top 6% / average return +16.16% / win rate 63% 

Yesterday’s market close: $64.12

Price target: $72.00

• Morgan Stanley's Meta Marshall upgraded their rating on Nutanix (NASDAQ: NTNX) from Hold to Strong Buy on 10/28. The analyst also raised their price target by 1.4% from $71 to $72.
• Marshall said they upgraded Nutanix stock to Strong Buy and raised their price target because the company "is positioning itself to capture a portion of VMware's greater than $5B hypervisor business."
• The analyst detailed that "channel expansion with Cisco and Dell, added incentives, and work on architectural changes should allow Nutanix to gain market share over the next few years."
• The max 1-year forecast for NTNX suggests 30%+ upside. Learn more here.

1-year chart for NTNX, courtesy TradingView

Life360 Inc. (NASDAQ: LIF) 

Analyst/Firm: Mark Kelley / Stifel Nicolaus

Analyst ranking: Top 2% / average return +42.55% / win rate 73% 

Yesterday’s market close:  $44.10 

Price target: $50.00 

• Maintaining a Strong Buy rating, Stifel Nicolaus's Mark Kelley raised their price target on Life360 (NASDAQ: LIF) by 25% from $40 to $50 on 10/28, in advance of the company’s earnings report, scheduled for 11/12.
• Kelley's price target hike was delivered in a Q3 2024 preview of names in their Internet e-commerce and subscription coverage area.
• Stifel Nicolaus's channel checks revealed that "Q3 e-commerce growth was, in the aggregate, sequentially in line to marginally better," the analyst told investors.
• See more analyst ratings and price targets on LIF here.

1-year (all-time) chart for LIF, courtesy TradingView

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