J.P. Morgan and Morgan Stanley started coverage on Reddit with equivalent to “hold” ratings, as they wait for clarity on the social media company’s user growth, while staying bullish on ad-revenue growth and artificial intelligence (AI) initiatives. Shares of Reddit were up 0.88% at $42.64 in premarket trading. While Reddit, which made its market debut last month, still relies on advertising for the vast majority of its revenue, it touted AI in its initial public offering marketing roadshow as an area of growth.
Roku’s stock was hammered on Monday, after Morgan Stanley put out a note to clients warning its share price is overvalued following a remarkable run this year.
Viacom has hired Morgan Stanley and LionTree to review its capital structure, a source familiar with the situation said on Wednesday, as the media company seeks ways to shore up its finances in the face of falling advertising sales. The review is a short-term assignment, said the source, who was not authorized to speak publicly about the matter and requested anonymity.
McGraw-Hill Sale Could Fetch $200 Million
McGraw-Hill has begun shopping its four-station group and is said to be drawing interest from the likes of Nexstar, Meredith and Belo. Based on its financials for 2010 and 2011, the group is worth between $150 million and $200 million, although bidding and the expection of big revenue gains from political advertising in 2012 could push the number higher.
