Reddit Reports First Profit, Shares Surge

Reddit's shares surged over 35% following the announcement of its first profitable quarter as a public company, reporting Q3 revenue of $348.4 million—up 68% year-over-year. The company achieved a net profit of $29.9 million, exceeding analyst expectations, and experienced a significant increase in daily active users, growing 47% to 97.2 million. Looking ahead, Reddit forecasts Q4 revenue between $385 million and $400 million, bolstered by strong advertising growth and AI-driven strategies. Analysts from Citigroup and JPMorgan have raised their price targets for Reddit, citing structural improvements and effective monetization strategies. CEO Steve Huffman noted that AI-driven features have contributed to user growth, and the company is focused on expanding these initiatives. Overall, Reddit's recent performance positions it as a formidable player in the social media landscape, drawing positive attention from investors and analysts alike.