How did DDI's Q4 earnings surprise impact investor sentiment?

**DoubleDown Interactive's (DDI) Q4 earnings surprise had a positive impact on investor sentiment**, as evidenced by several key indicators:

1. **Stock Price Reaction**: DDI's shares surged by 11.9% on October 1, 2024, following the announcement of the earnings surprise. This significant increase in stock price reflects investor optimism about the company's performance.
2. **Analyst Ratings and Price Targets**: Analysts at B. Riley boosted their Q4 2024 earnings estimates for DDI, forecasting $0.57 per share, up from $0.54. This revision upwards suggests that analysts are increasingly bullish on the stock. Additionally, B. Riley maintains a "Buy" rating with a $26.00 price target, indicating confidence in DDI's future performance.
3. **Institutional Activity**: Institutional investor B. Riley Financial Inc. reduced its holdings in DDI by 1.7% in the third quarter, but this was part of a broader portfolio adjustment and did not reflect negatively on the stock's fundamentals. Separately, Renaissance Technologies LLC increased its stake in DDI by 81.6% during the second quarter, demonstrating strong institutional interest and confidence in the company's prospects.
4. **Market Sentiment**: The overall market sentiment around DDI remains positive, with a Zacks Rank #1 (Strong Buy) rating. This indicates that analysts believe the stock has the potential for further gains, which could be driven by factors such as the addition of new meta features to its flagship app.

In conclusion, DDI's Q4 earnings surprise has likely contributed to a positive sentiment among investors, as reflected in the stock price movement, analyst ratings, institutional actions, and broader market sentiment.