As the Q1 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the social networking industry, including Reddit (NYSE:RDDT) and its peers.
Looking back on social networking stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Meta (NASDAQ:META) and its peers.
Neighborhood social network Nextdoor (NYSE:KIND) reported Q1 CY2025 results topping the market’s revenue expectations, with sales up 1.9% year on year to $54.18 million.
Consumer internet businesses are redefining how people engage with the world by giving them instant connectivity and convenience. Luckily for them, the market seems to believe there is a long runway for growth
as the industry has recorded a 1.6% gain over the past six months while the S&P 500 shed 2% of its value.
A surplus of cash can mean financial stability, but it can also indicate a reluctance (or inability) to invest in growth.
Some of these companies also face challenges like stagnating revenue, declining market share, or limited scalability.
A number of stocks fell in the afternoon session after President Trump criticized the Federal Reserve's approach to interest rate cuts, warning that the pace was slow and could hinder economic growth. Trump's comments added pressure to an already sensitive market, raising concerns about political interference in monetary policy.
Nextdoor Holdings, Inc. (NYSE: KIND), the essential neighborhood network, will report first quarter 2025 financial results following the close of the U.S. markets on Wednesday, May 7, 2025. Nextdoor will host a video webcast and conference call at 2:00 p.m. PT/5:00 p.m. ET to discuss the results and outlook. The event will include a brief review of NEXT-related product features.
As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the consumer internet industry, including Remitly (NASDAQ:RELY) and its peers.
Nextdoor has gotten torched over the last six months - since September 2024, its stock price has dropped 28.5% to $1.71 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move.
Small-cap stocks can be incredibly lucrative investments because their lack of analyst coverage leads to frequent mispricings.
However, these businesses (and their stock prices) often stay small because their subscale operations make it harder to expand their competitive moats.
As the Q4 earnings season wraps, let’s dig into this quarter’s best and worst performers in the social networking industry, including Nextdoor (NYSE:KIND) and its peers.
Shares of neighborhood social network Nextdoor (NYSE:KIND) fell 32.5% in the afternoon session after the company reported weak fourth-quarter 2024 results: its number of weekly active users fell short of expectations, and revenue and EBITDA guidance for the next quarter missed Wall Street estimates, signaling a tougher road ahead. Revenue guidance reflects a decline in ad impressions as Nextdoor prioritizes product transformation over immediate monetization, while EBITDA guidance suggests a return to losses.
Overall, while the quarter delivered a strong margin turnaround, the softer guidance and user growth challenges raise concerns about near-term execution risks.
Neighborhood social network Nextdoor (NYSE:KIND) beat Wall Street’s revenue expectations in Q4 CY2024, with sales up 17.4% year on year to $65.23 million. On the other hand, next quarter’s revenue guidance of $53 million was less impressive, coming in 13.7% below analysts’ estimates. Its GAAP loss of $0.03 per share was $0.01 above analysts’ consensus estimates.
