Welcome to Seeking Alpha's Wall Street Breakfast, where we cover the top news for investors

every morning. Good morning. Today is Thursday, February 13th. I'm Julie Morgan. Reddit is experiencing

rising costs. Your YouTube TV experience may be changing, and By-Dew is putting a new price tag on Ernie.

Social media company Reddit reported a massive surge in expenses led by its R&D spending,

which cast a shadow on its better-than-expected fourth-quarter results and guidance for the current

quarter.

RDDT shares, which IPOed in March of last year,

are down 13.6% in pre-market action. Total costs and expenses in Q4 surge 52% to 374.8 million,

led by a 69% increase in R&D expenses to 188.6 million.

Net income for the three months ended December 31st was 71 million compared to 19 million a year ago.

However, the net loss for 2024 increased fivefold to 484.3 million from last year,

due to IPO-related expenses expenses according to the company.

On a per share basis, Reddit earned 36 cents ahead of the average analyst's expectation by

11 cents apiece. Revenue rose 71% to 427.7 million million and handily beat estimates.

In the company's shareholder letter, CEO Steve Huffman said Reddit experienced some volatility

in Q4 with Google Search, which was triggered by a periodic algorithm change.

But traffic from search has recovered so far in Q1, and they've regained momentum.

For the first quarter, Reddit expects revenue between 360 and 370 million,

and adjusted EBAA in the 80 to 90 million range, ahead of the Bloomberg consensus

estimate of 358.7 million for revenue and 72.3 million for adjusted EBITA.

YouTube TV subscribers may lose access to Paramount-owned channels, including CBS, Nickelodeon,

Comedy Central, and MTV, among others, as YouTube and Paramount failed to reach a new agreement. The channels may be removed

...