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RDDT: Reddit Stock Gets the Upvotes as Revenue Hits Record $500 Million — And More Good News

1 min read
Key points:
  • Reddit stock takes off
  • Markets cheer earnings report
  • Next quarter? More of that coming

Big revenue jump that nearly doubled sales year on year got traders filled with enthusiasm for the stock. Next quarter? More of that is on the cards.

💰 Revenue Rockets

  • Reddit stock RDDT surged 15% at Friday’s open, recapturing all its year-to-date losses in one swift move. The meme-to-market pipeline is alive and well — but this time, the fundamentals are doing the talking.
  • The social news and chat messaging platform delivered record-breaking revenue, a big revenue beat, and gave a glowing forecast that lit up investor sentiment.
  • Second-quarter revenue hit $500 million, smashing Wall Street’s $426 million forecast and up a blistering 78% from a year ago. Analysts were bracing for $410 million–$430 million based on Reddit’s own guidance in May. Consider it exceeded — comfortably.

📈 Daily Users Climb

  • Earnings landed at $0.45 a share, more than double the expected $0.19. Who said internet forums can’t make serious money? Daily active users hit 110.4 million, a 21% year-over-year jump and above estimates.
  • Interestingly, registered users grew 17% versus a 24% increase in those anonymous keyboard warriors that lurk on the outside.
  • Reddit remains a unicorn in user behavior: half the audience doesn’t even log in… but they still scroll, click, and monetize.

💸 Next Quarter Looks Even Better

  • For the third quarter, Reddit expects $535 million to $545 million in revenue, compared to Wall Street’s modest $473 million forecast. If delivered, that would mark another record quarter and further momentum in what’s already been a breakout year.
  • CEO Steve Huffman said the company is “only becoming more critical” in today’s online landscape. After 20 years, Reddit’s finding its stride — and its profits.
  • Shares of Reddit are now showing green for the year with a market valuation of roughly $35 billion. Still, the stock is about 15% off its record high reached earlier this year.