Reddit Stock Surges Over 36% After Q3 Earnings

Reddit Inc. reported a remarkable third-quarter performance with revenue of $348.4 million, significantly surpassing analyst estimates of around $313 million, and achieving profitability for the first time since its IPO at $29.9 million. This led to a substantial stock surge, with shares rising over 36% on Wednesday, reaching over three times its initial public offering price. The growth is attributed to strategic investments in advertising technology and AI content licensing deals with major tech companies like Google and OpenAI. Reddit's user base also saw a 47% increase, reaching 97.2 million daily users, driven partly by its new AI translation feature. The company projects fourth-quarter revenue to be between $385 million and $400 million, further bolstered by its expanding partnerships and advertisement strategies. Analysts have responded positively, with some raising their price targets, reflecting confidence in Reddit's continued growth trajectory.